Ixigo, an online travel aggregator, has introduced a new Employee Stock Option Scheme (ESOS) for 2025, giving its staff members 1.2 crore (12 million) in stock options. This program is a calculated attempt to draw in and keep top talent while encouraging a long-term commitment and ownership culture among staff members.
Credits: MoneyControl
In a significant move, the board of Ixigo has also authorized giving co-founders Aloke Bajpai and Rajnish Kumar stock options worth at least 1% of the company’s issued capital as part of the ESOS 2025 strategy. This demonstrates the company’s intention to maintain leadership stability while coordinating the interests of important stakeholders with the expansion of the firm as a whole.
Breaking Down the ESOS 2025 Plan
Total Stock Options: The ESOS 2025 features a pool size of 1.2 crore (12 million) stock options. Upon vesting and exercise, these options will convert into an equivalent number of equity shares, maintaining consistency with ixigo’s existing stock structure.
Pricing Formula: Each option under ESOS 2025 is priced at INR 93, aligning with the issue price during ixigo’s Initial Public Offering (IPO).
Through this initiative, ixigo aims to incentivize employees by offering them a stake in the company’s success, thereby driving motivation and performance.
A History of Employee-Focused ESOP Allocations
ixigo has consistently demonstrated a strong commitment to rewarding its employees through stock options. Over the past year, the company has made multiple ESOP allocations:
January 2025: 10.58 lakh equity shares were allotted to eligible employees under various ESOP schemes.
December 2024: More than 4.6 lakh equity shares were granted to employees under multiple ESOS plans.
November 2024: ixigo expanded its ESOP pool by granting 17.57 lakh stock options under ESOP 2024.
These continuous efforts highlight the company’s strategy to retain and incentivize top talent in the fiercely competitive travel-tech industry.
ixigo’s Growth Story: From Startup to Publicly Listed Travel Giant
Ixigo, which was founded in 2007 by Aloke Bajpai and Rajnish Kumar, has grown to become one of the top travel websites in India. The company, which has its headquarters in Gurugram, Haryana, offers real-time travel information, pricing comparisons, and hotel, rail, bus, and aircraft booking services.
Ixigo has broadened its product offerings through technology-driven improvements and smart acquisitions while maintaining a customer-centric mindset. The company entered a new period of growth and stability in June 2024 when it went public, listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Financial Performance: Strong Revenue Growth with Key Profit Metrics
ixigo’s latest financial report for Q3 FY25 highlights impressive revenue growth and key profit metrics:
- Revenue Growth: The company achieved a 42% year-on-year (YoY) increase in revenue from operations, reaching Rs 241.8 crore in Q3 FY25, up from Rs 171 crore in Q3 FY24. Additionally, its Gross Transaction Value (GTV) grew by 48% YoY.
- Profit Metrics: ixigo posted a 46% YoY growth in Profit before share of loss of an associate, exceptional items, and tax, reaching Rs 23.3 crore in Q3 FY25.
- Net Profit: Profit After Tax (PAT) stood at Rs 15.5 crore in Q3 FY25, compared to Rs 30.6 crore in Q3 FY24, reflecting the impact of a deferred tax gain of Rs 16.8 crore in Q3 FY24 versus a deferred tax expense of Rs 5.9 crore in Q3 FY25.
What This Means for ixigo and the Travel-Tech Industry
Ixigo is making it very evident that it values and considers its employees to be essential to its success by putting ESOS 2025 into practice. Stock-based incentives offer a potent retention tool in a sector where it can be difficult to retain employees, particularly for tech-driven travel platforms.
The business is also well-positioned versus rivals like MakeMyTrip and EaseMyTrip because to its growth and ongoing investments in AI, machine learning, and data science-led technologies.
Credits: Money Control
Final Thoughts: A Win-Win Strategy for Employees and ixigo
More than merely an employee reward, ixigo’s ESOS 2025 demonstrates the company’s dedication to shared success and sustainable growth. Although the decline in net profit raises concerns about short-term profitability, the overall plan points to a long-term goal that will benefit investors, staff, and leadership.
It will be interesting to observe how this change affects Ixigo’s staff, innovation pipeline, and financial trajectory in the upcoming years as it continues to navigate the changing travel sector.
