Ixigo’s acquisition of train food delivery app Zoop isn’t solely about financial gains. The rationale is straightforward: Zoop’s business model boosts 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 transacting users will grow, engagement on our app will rise as users have another reason to visit us, and our overall revenue per user will increase with this additional travel-related service,” Bajpai explained.
In October, Ixigo announced 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 the 2025 fiscal year, Ixigo reported an operating revenue of INR 2.06 billion ($24.32 million), and a profit of INR 130.85 million ($1.5 million). Between April 1 and September 30 this year, the OTA reported 78.96 million monthly active users.
“We want to deliver the best customer experience to our users. Given the fact that most trains in India do not have a pantry car attached to them, getting quality food onboard becomes a challenge.”
Over the last few years, IRCTC, the Indian Railways’ ticketing and catering arm, has updated its policy, to allow food to be delivered to passengers onboard the train. IRCTC has also tied up with food delivery apps Zomato and Swiggy.
How Food Gets Delivered on Trains
In India, food delivery on trains combines convenience with technology. Passengers use food delivery apps to order meals during their journey. 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 the chosen station.
This growing sector has attracted food aggregators like Zoop, a key player in the train delivery space. Over six years, Zoop has expanded its services to over 190 stations, working with restaurant partners or using its own network, Bajpai said.
The business is not just about convenience, it’s profitable too. In fiscal 2024, Zoop earned INR 76.5 million ($910,000) in revenue, achieving profitability. “We like to acquire businesses that are either already profitable or on the path of profitability and where the product market fit has already been established,” Bajpai said, reiterating what he had earlier said to Skift in an interview after the company went public earlier this year.
Train Food Delivery Market
The overall size of the food delivery opportunity for rail passengers exceeds $1 billion based on Zoop management estimates, Ixigo’s Chief Financial Officer Saurabh Devendra Singh had said at the time of the acquisition. “The overall train food order market has a scope to expand 10-15 times from where it is now, and can help us monetize the train audience better during their trips,” Singh said.
According to Bajpai this is a large addressable market and relevant to Ixigo customers,. “We have a dominant presence within the OTA space in the train booking segment. It made sense to start the train food delivery offering natively in our apps.”
Customers using Ixigo or ConfirmTkt apps can now access the Zoop app. “We are going to double down on integrating and growing that business now,” Bajpai said.
The Idea Behind Acquisitions
Ixigo launched an IPO earlier this year, and it intended to use the proceeds for strategic acquisitions and market expansion. Rajnish Kumar, Director and Group Co-CEO of Ixigo had then said, “Our playbook of creating the best customer experience by being the most customer-centric travel company will remain.”
That is also the idea behind acquiring Zoop. “The way we look at these kinds of investments or acquisitions is not necessarily in terms of quantifying any financial returns, but more in terms of delivering the right experience to users by leveraging these acquisitions,” said Bajpai.
