Ticketing and aggregation platform AbhiBus, based in Hyderabad, has been acquired by Le Travenues Technology, the company behind artificial intelligence (AI)-based travel app Ixigo.
According to a company statement, the acquisition is a slump sale of a going concern for a mix of cash and Ixigo stock as consideration.
In addition, all intellectual property, brands, technology, and operations have been transferred to Ixigo and AbhiBus employees, including founder Sudhakar Reddy Chirra.
Ixigo’s Aloke Bajpai and Rajnish Kumar said, “AbhiBus is an innovative and fast-growth company whose services are offered across state road transport companies (SRTCs) and private bus companies and available on-demand nationwide.
According to Chirra, they are “excited” to join Ixigo and “remain committed to the underserved market segment for which trains and buses are the primary modes of transportation”.
According to the statement, India’s long-haul intercity bus market was valued at Rs 585 billion in FY2020, and buses are the most preferred mode of travel in both urban and rural areas, accounting for 65% of all transportation.
The resumption of bus services after COVID-19 lockdowns were relaxed across the country has also led to a quick recovery in ticket sales. The industry is also expecting a full recovery in the next six months.
Notably, this will be Ixigo’s second acquisition in 2021 after the initial public offering (IPO). It earlier bought train booking app Confirmtkt.
According to industry reports, AbhiBus was the second-largest bus aggregator in India in FY20, selling 26,000 bus tickets per day.
In addition to offering a multi-modal transportation experience across trains, flights, and buses to its combined user base of nearly 255 million by May 31, 2021, this deal will also help the Ixigo group consolidate its presence in Tier 2, 3, and 4 markets.