Elevation Capital Nets 25X Return From Ixigo Stake Sale
Despite the continued stake dilution, Elevation Capital still held a 14.02% stake in Ixigo as of March 31, 2024.
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Multi-stage venture capital firm Elevation Capital has earned a 25X return by further paring its stake in travel tech platform Ixigo (Le Travenues Technology), underscoring the firm's track record in backing high-growth consumer tech ventures.
According to stock exchange data, Elevation sold 21.5 lakh equity shares in a block deal on Monday at INR 178 per share, reducing its holding in the company. The firm had originally acquired the shares at a mere INR 7.14 apiece, as disclosed in Ixigo's draft red herring prospectus (DRHP), marking a significant exit milestone.
The sale is the latest in a series of stake reductions by Elevation in Ixigo. Previously, the VC firm offloaded shares worth INR 100 crore during a pre-IPO secondary transaction, followed by another INR 181 crore via the IPO offer-for-sale.
Despite the continued stake dilution, Elevation Capital still held a 14.02% stake in Ixigo as of March 31, 2024.
Ixigo's strong financial performance has likely buoyed investor confidence. For the fourth quarter, the company reported a 72% year-on-year surge in operational revenue to INR 284 crore, driven by growth in its core travel booking verticals. Profit after tax soared 128% year-on-year to INR 17 crore, reflecting efficiencies across its flight and bus ticketing segments.
Ixigo's parent, Le Travenues Technology, saw its shares close at INR 172.70 on Tuesday, down 1.09% on the day.
Elevation Capital, formerly known as SAIF Partners, has been an early and prominent backer of some of India's top startups, including Paytm, Meesho, and Swiggy. Its successful exit from Ixigo adds to a growing list of profitable ventures, reaffirming its role as one of the country's most consistent startup investors.
The latest development highlights a broader trend of VC firms capitalising on strong public markets to lock in returns on long-term bets, especially in sectors like travel tech that are rebounding sharply post-pandemic.
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