Yatra Online IPO

 

 

The Indian travel industry was estimated at Rs 2,825-2,845 billion in FY23. Led by a growing economy, geographical and cultural diversity, and various government initiatives, the Indian travel industry grew at 6-8% CAGR between FY17-FY23, to a size of INR 2,82500-2,84500 crores. The growth momentum is expected to continue. The industry is expected to grow annually by 11% to ~INR 4,56000 crores by FY28, driven by development of tourism infrastructure, rising income levels translating to higher discretionary spending on travel and tourism, increase in frequency of travel business and leisure purposes, reforms in visa and increase in connectivity across means of transport. Online penetration within the industry is expected to reach 73-75%. As a result, the online travel market in India is estimated to grow to INR 3,35500 crores in FY28 from INR 1,92000 crores in FY23, or at a 12.5% CAGR. Within the online travel market, the share of OTAs is expected to increase faster than captive players which is beneficial for market leaders like Yatra Online Ltd.

Yatra Online Ltd. is India’s largest corporate travel services provider in terms of number of corporate clients and the third largest online travel company in India among key Online Travel Agency (OTA) players in terms of gross booking revenue and operating revenue, for FY23. It has the largest number of hotel and accommodation tie-ups amongst key domestic OTA players with over 2,105,600 tie-ups, as of March 31, 2023. The company is the leading corporate travel service provider in India with 813 large corporate customers and over 49,800 registered SME customers and the third largest consumer online travel company (OTC) in the country in terms of gross booking revenue for FY23. The company’s go-to-market strategy spans the entire value chain of travel and hospitality covering B2C (business to consumer) and B2B (business to business which includes business to enterprise and business to agents). The combination of its B2C and B2B channels enable it to target India’s most frequent and high-spending travellers, namely, educated urban consumers, in a cost-effective manner. Over 800 large corporate customers of the company employ over 7.00 million people who along with their families form a large part of the consuming upper middle class of India. In addition, its travel agent network provides additional scale to its business by leveraging its integrated technology platform in order to aggregate consumer demand from over 29,800 travel agents in above 1,000 cities across India as of March 31, 2023. Leisure and business travellers use the company’s mobile applications, its website, www.yatra.com, and its other offerings and services to explore, research, compare prices and book a wide range of travel-related services. These services include domestic and international air ticketing on nearly all Indian and international airlines, as well as bus ticketing, rail ticketing, cab bookings and ancillary services within India. It also provides access through its platform to hotels, homestays and other accommodations, with about 105,600 hotels in 1,490 cities and towns in India, as of FY23 and more than two million hotels globally, which is the highest hotel inventory amongst key Indian OTA players.

Total income increased by 81.65% YoY to INR 3,974.65 million in FY23. In Fiscals 2023, 2022, and 2021, Yatra generated 46.82%, 58.09% and 71.19% of revenues from operations from Air Ticketing business, 38.03%, 25.85% and 12.48% of its revenues from Hotels and Packages business and 4.06%, 7.38% and 2.50% of its revenues from other services. Yatra’s adjusted margin percentage from Hotels and Packages business in FY23, FY22, and FY21, were 13.06%, 17.18% and 19.71% and adjusted margin percentage from Air Ticketing business in FY23, FY22, and FY21, were7.69%, 8.0% and 11.44%. The company’s restated profit during the year ended March 31, 2023 was INR 76.32 million as compared to a restated loss of INR 307.86 million in the year ended March 31, 2022.

Objects of the issue:

1. Strategic acquisitions and investments
2. Investment in technology
3. General corporate purposes