Wise Travel India Limited IPO

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Wise Travel India Limited (WTI) presents a comprehensive business overview, reflecting a journey of growth, innovation, and commitment to excellence in the transportation and mobility services sector. Founded on April 22, 2009, as Wise Travel India Private Limited, the company transitioned to a public limited entity in 2023, marking a significant milestone in its corporate evolution. This transition underlines WTI’s expanding footprint and its readiness to embrace broader market opportunities.

Core Operations and Services

WTI began its operations with a clear objective: to redefine urban mobility and transform daily commutes across India. With a suite of services tailored to meet the diverse needs of corporate clients, WTI has positioned itself as a key player in the transportation service industry. Services include car rental for corporates, employee transportation solutions, end-to-end employee transport management (MSP), flexible rental plans, airport counters, fleet management, mobility services for meetings, conferences, exhibitions (MICE), cutting-edge mobility technology solutions, sustainable mobility with electric vehicles, project mobility solutions, strategic consulting, and community commute programs. These offerings demonstrate WTI’s commitment to delivering value-driven, efficient, and sustainable transportation solutions.

Strategic Expansion and Market Position

The strategic guidance of its founders—Mr. Ashok Vashist, Ms. Hema Bisht, and Mr. Vivek Laroia—has been pivotal in WTI’s growth. Their vision and industry experience have steered the company through its journey, contributing to its strong market position. WTI’s adherence to this vision and the experience of its management team have been crucial in achieving and maintaining its industry standing.

WTI’s expansion has been both geographic and operational. With a pan-India presence across major cities and strategic locations in 12 airports, WTI has ensured accessibility and convenience for its clients. The establishment of WTI RENT A CAR L.L.C in Dubai in 2023 marks its foray into international markets, showcasing its ambitions beyond Indian borders.

Milestones and Recognition

Since its inception, WTI has achieved several milestones, including managing transportation for the XIX Commonwealth Games in 2010, expanding its fleet to over 2500 cabs, and integrating electric vehicles into its services. These achievements underscore WTI’s ability to adapt to market demands and environmental considerations. The company’s commitment to excellence has been recognized through various awards, including Asia’s Greatest Brand and the World’s Greatest Leaders 2015 Asia & GCC, among others.

Future Outlook

WTI’s journey from a private limited company to a public entity and its expansion into international markets signify its growth trajectory and potential for future success. By continuously investing in technology, sustainability, and the expansion of its service offerings, WTI is well-positioned to meet the evolving needs of its clients and the industry at large. The introduction of a Management Trainee Program reflects WTI’s commitment to nurturing future leaders, ensuring the sustainability of its business model and the continuation of its corporate ethos.

In conclusion, Wise Travel India Limited stands as a testament to visionary leadership, strategic expansion, and an unwavering commitment to redefining urban mobility. With a solid foundation and a forward-looking approach, WTI is poised for continued growth and success in the dynamic field of transportation and mobility services.

Objects of the Wise Travel India Limited IPO:

The company intend to utilize the proceeds of the Issue to meet the following objectives: - i. To Meet Working Capital Requirement ii. General Corporate Purpose iii. To Meet the Issue Expenses
DRHP of Wise Travel India Limited IPO
RHP of Wise Travel India Limited IPO

Wise Travel India Limited IPO Details:

Open Date: Feb 12 2024
Close Date: Feb 14 2024
Total Shares: 6,441,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 94.68 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 140 - 147 Per Equity Share
Listing At: NSE Emerge
Listing Date: Feb 19 2024

Promoters And Management:

Mr. Vivek Laroia, aged 54 years is Managing Director and also the Promoter of the Company. He holds Post Graduation Diploma in Business Administration. He was appointed on the Board on April 22, 2009 and further designated as Managing Director of the Company on September 13, 2023 for a period of 5 years. He is having 34 years of experience in the Corporate Travel Service Industry. He holds the responsibility of formulating major policy decisions, business strategies of the Company. He is responsible for the expansion and overall management of the business of the Company. Ms. Hema Bisht, 54, is the Director with 17 years of experience in corporate and travel services. Holding a Bachelor's degree from Delhi University, she joined the board on April 22, 2009. Her notable achievements include launching Alaska Airlines in Northern India, leading record sales at ETA Travel Agency, and revitalizing RITCO Travels' Jaipur branch. Her expertise in leadership, operational management, and customer satisfaction has significantly contributed to the company's success. Mr. Manish Kumar Sharma, 42, is the Whole-Time Director, with a Master’s in Commerce, appointed as Executive Director on September 30, 2019, and designated as Whole-Time Director for a 5-year term starting September 15, 2023. With over 20 years in finance and accounts, Mr. Sharma excels in financial management, budgeting, forecasting, and analysis. His strategic financial insights and ability to optimize costs have established him as a key asset to the organization.

Financials of Wise Travel India Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
6M-FY24
Revenue from Operations 4,227 8,862 24,960 18,989
Other Income 179 108 37 28
Total Revenue 4,406 8,970 24,997 19,017
Operating Expenses 2,884 6,529 19,707 14,638
Employees Benefit Expenses 632 1,032 2,028 1,305
Other Expenses 412 689 1,367 880
EBITDA 477 720 1,895 2,193
Depreciation & Amortisation 199 161 361 534
Finance cost 56 68 151 179
EBIT 279 559 1,534 1,659
OPM (%) 10.83% 8.03% 7.58% 11.53%
PBT 223 491 1383 1481
Tax 59 115 351 400
PAT 173 378 1029 1133
NPM (%) 3.92% 4.21% 4.12% 5.96%
No.of Shares 238.11 238.11 238.11 238.11
EPS 0.72 1.58 4.32 4.75
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Wise Travel India Limited 250 10 4.32 34.0 147 350
Shree OSFM E-Mobility Limited 82 3 2.94 37.0 80 114
Mahindra Logistics Limited 5,128 25 3.65 N/A 404 2,907
* All the data is as per FY23.

Recommendation on Wise Travel India Limited IPO:

Review and recommendation of WTI Cabs by IZ team is 5/10. A) About Wise Travel India Limited: Wise Travel India Limited (“WTI Cabs” or “WTI”) is engaged in the business of providing online car rental and taxi booking services in India. The operations are carried out with a large fleet of on-road and robust technology platforms. The objective behind the venture is to have presence across the value chain through services in the corporate people transportation which includes: 1.Car Rental Services,  2.Employee Transportation Services,  3. Car Leasing,  4.Coach Rentals,  5.Convenient Airport Counters  6.Technology, and Mobility Solutions. The breakup of Total Revenue from Operations (Geographical breakup): 100% revenue from domestic sale of service. The Company has incorporated an entity namely, WTI RENT A CAR L.L.C C in Emirate of Dubai on September 13, 2023 to cater the International market with the objective of providing car rental services. As on date, the company has no revenue in international sources. B) Segment wise Revenue (In crores)
Segment Bifurcation FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 (Data Till Sep 2023) 
Spot Rental B2B 17.08 31.16 62.78 49.61
Spot Rental B2C 0.19 0.15 0.49 0.42
Employee Transportation B2B 10.49 21.96 103.02 70.11
Manage service provider B2B 3.26 5.59 27.76 35.65
Long term rentals B2B 6.36 20.21 29.41 19.57
Airport Counters B2C 4.77 9.51 25.82 14.50
Other (Individual, Consultancy, etc) B2B .08 0 0.28 0
Total 42.26 88.62 249.59 189.88
C) India Car Rental Market Scope:
Report Metric Details
Market Size value in 2019 US$ 1.053 billion
Market Size value in 2026 US$ 2.030 billion
Growth Rate CAGR of 9.83% from 2019 to 2026
D) Competition analysis The organized cab services market in India is dominated by the online cab services segment. The online cab or radio taxi service providers in the country operate either as aggregators or as radio cabs, based on their tracking feasibility. In 2019, the aggregator based model or app-only based model of online cab services, contributed more than 95% of the revenue generated from the overall India online cab services market. The online cab services market in India was valued at INR 30.72 Bn in FY 2020 and is expected to expand at a compound annual growth rate (CAGR) of ~12.93% during the FY 2021 – FY 2025 period, to reach a value of INR 55.15 Bn by FY 2025. India's online cab services market is mainly driven by the two giant companies; ANI Technologies Private Limited (Ola Cabs) and Uber India Systems Private Limited (Uber India). In FY 2020, almost 74.65% of the total revenue generated by the online cab services market in India was attributed to Ola Cabs, whereas, Uber India held a share of ~20.07% in the market. Other players operating in the market include Meru Mobility Tech Private Limited, Mega Cabs Private Limited, and Carzonrent (India) Private Limited. As of 2020, Ola Cabs is operational in around 130 cities in India, whereas, Uber India operates in around 55 cities.   Overall, while the online cab services market in India presents significant growth opportunities, small players face formidable challenges in establishing themselves and competing effectively against established incumbents. Strategic planning, innovative business models, and a focus on customer service may help small players carve out a niche in this competitive landscape. E) Risk Factors: 1.Company had negative cash flow from operating activities (funds blocked in Trade receivables) in the past based on the Restated Financial Statement of our Company and may, in future, experience similar negative cash flows. (Rs. in Crores)
Sep 30, 2023 March 31, 2023 March 31, 2022 March 31, 2021
Net Cash from Operating Activity 13.20 (8.52) (2.85) (11.56)
2.Company has a subsidiary namely, PT. WTI Trading & Mining Ventures (Indonesia), Audited Financials are not available with the Company. 3.Company does not own a registered trademark. Company’s inability or failure to protect the trademark may adversely affect company’s business on account of possible misuse by any third party. 4.Corporate Governance: a)Company has not complied or delayed in compliances with some statutory provisions of the Companies Act 2013 (ROC forms). Such non-compliance and delayed compliance may attract penalties against our company which could impact the financial position of us to that extent. b)Company has not fulfilled its CSR obligation u/s 135 of the Companies Act, 2013 for the F.Y. 2019-20 and F.Y. 2020-21. Such noncompliance/ default may attract penalties on the Company and its Directors. 5) Intense competition in the market of cab service Industry could affect company’s pricing, which could reduce the share of business from clients and decrease revenues and profitability. 6) Company does not have long-term agreements with most of the suppliers or customers and the loss of one or more of them or a reduction in their demand for the company's services could adversely affect business, results of operations, financial condition and cash flows.  7) Company’s Promoters and members of the Promoter Group will continue jointly to retain majority control over the Company even after the Issue which will allow them to determine the outcome of matters submitted to shareholders for approval. 8) Company has obtained Trade License from the local government authority of Bengaluru for trade in all food items instead of supply of cab services. F) Company negative cash flow from investing activities means company is investing in vehicles and increasing their capacity. Generally this business runs on outsourced Transportation service but simultaneously company also investing in their own vehicles which may give higher profit margin in future.

Lead Manager of Wise Travel India Limited IPO:

  1. Share India Capital Services Private Limited

Registrar of Wise Travel India Limited IPO:

  1. Beetal Financial & Computer Services (P) Limited

Company Address:

Wise Travel India Limited D-21, Corporate Park, 3rd Floor, Near Sector-8 Metro Station, Sector-21, Dwarka- 110075 Phone: +91-11-45434542 Email: cs@wti.co.in Website: https://www.wticabs.com/

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