Online travel startup Ixigo is raising Rs 35 crore from Indian media company Amar Ujala limited. The fresh funds will come to the aid of the 13-year-old company as it struggles to stay afloat in these unprecedented times.
Ixigo will allot Series B1 CCPS to Amar Ujala in five tranches for a total consideration of $4.6 million~ Rs 35 crore. In the first tranche, 5,333 CCPS and 10 equity shares will be allotted along with four share warrants having exercise period extending to March 2022, reveals the latest regulatory filings.
The company had last raised a $15 million Series B round from Sequoia Capital and Fosun RZ Capital, an arm of a Chinese corporate conglomerate.
The Gurugram-based company will utilise these funds for its capital and general corporate expenses at a time when the whole industry is strapped for cash.
Last month, Entrackr had exclusively reported about Ixigo slashing salaries across all levels by about 20 to 60% and its co-founders Aloke Bajpai and Rajnish Kumar taking a substantial pay cut in a bid to conserve cash as travel businesses have been severely hit due to the COVID-19 pandemic.
Ixigo’s biggest backer MakeMyTrip has also implemented similar pay cuts while the holiday packages-centered startup Travel Triangle has fired 300 employees.
The going looks tough for the travel and hospitality industry worldwide as the pandemic continues to spread havoc with global COVID-19 cases at over 2.7 million.
With government-enforced lockdowns and travel bans, online and offline travel agents (OTAs) have taken a brutal blow to their business and they stare at an uncertain future.