A Study of Financial Performance of Listed Travel Tech Startups in India

TOPIC: A Study of Financial Performance of Listed Travel Tech Startups in India

Mansi Baheti, Dr. Deva Ram

ABSTRACT

The travel tech market in India is a budding space with robust growth on the back of digitally transformed industry, changing customer consumption and hitherto evolving financials. The purpose of this study is to evaluate the financial performance and capital structure of four key travel tech startups such as Easy Trip Planners Ltd, Le Travenues Technology Ltd, TBO Tek Ltd and Yatra and their financial parameters like the Debt to Asset and Debt to Equity ratio, Net Profit, Return on Capital Employed (ROCE) and Return on Equity (ROE). This paper explores the relationship between profitability and financial leverage in order to determine how debt affects the financial leverage of a firm and its stability and growth through a correlation and p value analysis.

The analysis shows that the Easy Trip Planners Ltd has good financial health with high profitability, efficient capital utilization and low volatility, which is a sign of growth in the industry. Le Travenues Technology Ltd and Yatra whose profitability and financial efficiency are also not very robust. With modest debt profitability related correlations, TBO Tek Ltd had mixed financial performance. With what this research provides for insights about how financial strategies affect how growth and sustainability happen, these may be used by emerging startups and investors. The borrowed money is being spent on reducing debt management, operational efficiency and risk mitigation, which together form the key for achieving the long term success.

Keywords : Financial Performance, Travel Tech Startups, Capital Structure, Startup Financing