Yatra IPO opens today, CEO Dhruv Shringi says company looking for new revenue growth channels, ET TravelWorld

India’s leading online corporate travel agency, Yatra Online, is gearing up to launch its highly anticipated initial public offering (IPO) on September 15, with a subscription period lasting until September 20. The company has fixed the price band at INR 135 to INR 142 per Equity Share for its initial public offering. The initial public offering of Equity Shares comprises a fresh issuance of Equity Shares worth INR 6,020 million and an Offer for Sale (OFS) of up to 12,183,099 Equity Shares.

Proceeds from the fresh issue will be utilize to the tune of INR150 crores for strategic investments, acquisitions, and inorganic growth, INR 392 crores for investment in customer acquisition and retention, technology, and other organic growth initiatives and general corporate purposes.

In an exclusive interview with ETTravelWorld, Dhruv Shringi, Co-Founder & CEO, Yatra Online delved more into the details of Yatra’s IPO pricing, revenue plans, investment strategies, and the evolving dynamics of the travel industry. He said Yatra is exploring new sectors, such as digital freight forwarding and licensing technology to global players, with the potential for medium to long-term growth.

Shringi began by shedding light on Yatra’s IPO pricing and revenue plans, emphasising the importance of market dynamics. The online travel company is gearing up for a significant move, and they’re doing it strategically. While he didn’t divulge specific numbers, he hinted at a well-thought-out approach that takes into account the current state of the market.

Investment and Growth Strategies
Yatra has earmarked a substantial sum of INR 150 crore rupees for strategic investments and acquisitions. Shringi outlined their intent to fuel growth both organically and inorganically. This ambitious strategy opens doors to exploring new sectors, with a notable focus on digital freight forwarding and licensing technology to global players. These endeavours hold the potential for medium to long-term growth, indicating Yatra’s commitment to staying ahead in the travel industry.

Business Travel, Technology, and the Omnichannel Approach
Discussing business travel, Dhruv Shringi pointed out its resilience in India, even amidst the challenges posed by COVID-19. He mentioned a projected average growth rate of 1.5-2 times GDP, underlining the sector’s potential. Yatra aims to capitalise on this by offering corporate travellers an omnichannel experience. This approach combines the strength of agency networks with user-friendly self-service options on their platform.

Changing Preferences and Technology Adoption
Corporate travellers’ preferences are undergoing a transformation. They are leaning towards technology-driven transactions, blurring the lines between business and leisure travel. Yatra is keen on adapting to these shifts, making sure they cater to the changing needs of their customers.

Infrastructure Growth and Collaboration
When discussing industry growth, Shringi highlighted the need to focus on upskilling the workforce rather than just expanding numbers. The post-Covid travel boom requires a workforce that can meet the demands effectively.

According to Dhruv Shringi, infrastructure growth in aviation and railways will be a significant driver of long-term industry expansion. However, he stressed the importance of industry-wide collaboration to succeed in this endeavour. The Yatra CEO also touched upon the rapid growth in India’s travel and tourism industry, driven by increasing demand for experiences like travel and dining out. Both the government and private players are working together to expand airport infrastructure, making India unique in having robust demand and supply in these sectors.

In conclusion, Shringi expressed optimism about the future, foreseeing a decade of growth for the travel industry, barring unforeseen events. His insights shed light on Yatra Online’s strategic direction and the broader trends shaping the travel landscape in India.