Ixigo’s acquisition of train food delivery app Zoop isn’t just about financial gains. The rationale is simple: Zoop’s business model increases profits, scales easily and improves the delivery experience for customers, Ixigo Group CEO and co-founder Aloke Bajpai told Skift.

According to Bajpai, Zoop can drive more purchases on the platform. “The number of users transacting will increase, engagement on our app will increase as users have another reason to visit us, and our overall revenue per user will increase with this additional travel-related service,” explained Bajpai.

In October, Ixigo announcement its foray into train food delivery service with the acquisition of a 51% stake in Zoop for INR 125.4 million ($1.5 million).

During the second quarter of fiscal 2025, Ixigo reported operating revenue of INR 2.06 billion ($24.32 million) and profit of INR 130.85 million ($1.5 million). dollars). Between April 1 and September 30 of this year, the OTA reported 78.96 million monthly active users.

“We want to provide the best customer experience to our users. Since most trains in India are not equipped with a pantry car, carrying quality food on board becomes a challenge.

Over the past few years, IRCTC, the ticketing and catering arm of Indian Railways, has updated its policy to allow delivery of food to passengers on board the train. IRCTC has also partnered with food delivery apps Zomato and Swiggy.

How food is delivered on trains

In India, food delivery on trains combines convenience and technology. Passengers use food delivery apps to order meals during their trip. By entering their PNR (Passenger Name Record) number, they can view a list of stations where food delivery is available. They select a station, browse menu options from various restaurants and place an order. The food is then delivered directly to their train seat when the train stops at their chosen station.

This growing sector has attracted food aggregators like Zoop, a key player in the rail delivery space. In six years, Zoop has expanded its services to more than 190 stations, working with restaurant partners or using its own network, Bajpai said.

The business is not just about convenience, it is also profitable. In fiscal 2024, Zoop achieved revenue of INR 76.5 million ($910,000), achieving profitability. “We like to acquire companies that are already profitable or poised to become profitable and whose product-market fit has already been established,” Bajpai said, reiterating what he had said. earlier told Skift in an interview after the company went public earlier this year.

Train Food Delivery Market

The overall size of the rail passenger food delivery opportunity exceeds $1 billion, as estimated by Zoop management, Ixigo CFO Saurabh Devendra Singh had said at the time of the acquisition. “The overall market for ordering food on trains has the potential to expand 10-15 times what it is currently, and can help us better monetize train audiences during their travels,” said Singh.

According to Bajpai, this is a large addressable and relevant market for Ixigo customers. “We have a dominant presence in the OTA space in the train booking segment. It made sense to launch the train food delivery offering natively in our applications.

Customers using the Ixigo or ConfirmTkt apps can now access the Zoop app. “We will now redouble our efforts to integrate and grow this business,” Bajpai said.

The idea behind acquisitions

Ixigo launched an IPO earlier this year and intended to use the proceeds for strategic acquisitions and market expansion. Rajnish Kumar, Director and Co-CEO of Ixigo Group then said“Our strategy of creating the best customer experience by being the most customer-centric travel agency will remain.”

This is also the idea behind the acquisition of Zoop. “The way we look at these types of investments or acquisitions is not necessarily in terms of quantifying the financial returns, but rather in terms of providing the right experience to users by leveraging these acquisitions,” he said. Bajpai said.