ixigo Acquires Majority Stake in Brevistay for ₹66 Crore to Bolster Hotel Booking Segment

Indian traveltech major ixigo has announced a significant strategic move, acquiring a 54.66% majority stake in Brevistay Hospitality Pvt Ltd, a startup specializing in hourly hotel bookings. The deal is valued at ₹65.69 crore (approximately $6.9 million) and was approved by ixigo’s board. This acquisition is part of ixigo’s broader strategy to enhance its online hotel booking capabilities and expand its offerings in the competitive Indian travel market.

The transaction involves a combination of secondary and primary share purchases, with the acquisition expected to be finalized on or before July 31. Following the completion, Brevistay will operate as a subsidiary of ixigo. The agreement also includes provisions for ixigo to acquire the remaining stake in Brevistay in the future, subject to specific conditions.

Key facts:

Metric	Value
Acquisition Stake	66%
Acquisition Value	₹65.69 Cr ($6.9 Mn)
Target Completion	On or before July 31
Brevistay FY26 Turnover	₹18.1 Cr (48% YoY growth)

Strategic Rationale for ixigo

The primary motivation behind ixigo’s acquisition of Brevistay is to strengthen its position in the online hotel booking segment. Brevistay, founded in 2016 by Prateek Singh, Nikhil Pathak, Aditya Naithani, and Shubham Agarwal, offers a unique proposition in the market by allowing users to book hotel rooms for flexible durations, such as 3, 6, or 12 hours, rather than requiring a full 24-hour stay. This model caters to a specific demand for short-stay accommodations, which has seen increasing popularity in urban centers across India.

Brevistay operates in over 200 cities, including major hubs like Delhi, Mumbai, and Bengaluru, competing with established players like Zostel and OYO in certain segments. By integrating Brevistay’s flexible booking model, ixigo aims to tap into this growing niche and provide more diverse options to its user base, potentially attracting a new demographic of travelers and business users seeking short-term lodging solutions. This move aligns with ixigo’s stated intention to invest in hotels and adjacent travel categories, as highlighted during its recent financial results.

Recent Performance and Broader Investment Strategy

ixigo, a listed traveltech giant, has shown robust financial performance. For the fourth quarter of FY26, the company reported a significant 91% year-on-year increase in consolidated net profit, reaching ₹32.1 crore, up from ₹16.8 crore in the previous year’s quarter. Operating revenue also saw a healthy 9% rise, climbing to ₹308 crore from ₹284.1 crore in the same period last year. Brevistay itself reported a strong turnover for FY26, with a 48% year-on-year growth to ₹18.1 crore, indicating the potential for further scaling within ixigo’s ecosystem.

This acquisition is not an isolated event but part of a broader investment and acquisition spree by ixigo this year. Earlier, the company acquired a 60% stake in Trenes for €11.7 million (approximately ₹125 crore) and a 45.02% stake in Sqaas for €450,000 (₹4.8 crore) in March. These multiple strategic investments underscore ixigo’s aggressive growth strategy and its commitment to expanding its market footprint across various travel segments. Additionally, ixigo’s board also approved two other investments in Proactai and Vestra.AI, to be completed by July 5, signaling a continued focus on leveraging technology and AI in its offerings.

Impact for Indian Startups and Travel Sector

For Indian startups in the travel and hospitality sector, this acquisition highlights the ongoing consolidation and strategic investments by larger players. It demonstrates that niche solutions catering to specific market needs, such as flexible hourly hotel bookings, can attract significant investment and become integral to the growth strategies of established companies. The deal also validates the business model of startups like Brevistay, which received institutional funding previously from investors like Indian Angel Network (IAN) in its 2022 seed round.

The integration of Brevistay into ixigo’s platform is expected to create new opportunities for both travelers and hotels. Travelers will benefit from more flexible and potentially cost-effective accommodation options, while hotels partnered with Brevistay could see increased occupancy rates for shorter durations. From a broader market perspective, this acquisition is likely to intensify competition in the online hotel booking space, potentially pushing other players to innovate their offerings and explore similar flexible booking models.

Future Outlook

ixigo’s management has explicitly stated its openness to further acquisitions while continuing to invest in AI infrastructure, hotels, and adjacent travel categories. This indicates a clear strategic direction focused on leveraging technology and M&A to drive growth and maintain a competitive edge. The company’s consistent financial performance and proactive investment approach suggest a robust outlook for its expansion within the dynamic Indian travel market.

Source: Inc42, https://inc42.com/buzz/ixigo-to-acquire-a-majority-stake-in-brevistay-for-%e2%82%b966-cr/