IT infrastructure company Netcon Technologies made a strategic investment of an undisclosed amount in tech startup Nikitek for digital transformation in the passenger travel ecosystem with technology innovations.
As part of the investment, Netcon will help the Pune-based startup to digitally transform the handling of baggage at airports and drive sustainability in the aviation industry.
Nikitek has designed and developed India’s first electronic baggage tag, ‘godigitag’, that aims to replace the paper bag tag. The eco-friendly digital bag tag will help in a seamless travel experience for flyers and will also complement the digital initiatives of the industry, the company said.
“Our strategic investment in Nikitek marks a significant stride in making air travel more accessible, sustainable and efficient,” said Mahalingam Ramasamy, Founder & Managing Director of Netcon Technologies.
The strategic investment agreement was signed by Ramasamy and Vinod Philips, Founder & CEO of Nikitek, on April 9, 2024, at the latter’s Bengaluru headquarters.
The investment banking team from Zaikenn Technologies and Sujeet Mukherjee from 99 Million Partners were the strategic advisors to the transaction.
The Netcon Group and Nikitek are eyeing a share of the pie in the airport baggage handling industry that is estimated to be around $5 billion.
“This is just the beginning of our shared mission to redefine the travel experience for generations to come,” said Ashiq, CEO of Netcon Technologies.
With this innovation, flyers can tap their mobile device on the electronic tag, either at their homes or upon arrival at the airport, which will capture all the necessary bag details. The travellers can then attach the godigitag to their bag and drop it at the designated baggage drop counter.
The process will save travellers’ time in the queue waiting for agents to do the tagging process manually, the company said.
Nikitek will use the funds raised for technology enhancements, go-to-market plans, Value-Added Service (VAS) integrations, and to accelerate their market entry plans for its product.
“Our shared vision of driving innovation and sustainability in airline operations is set to deliver a future of seamless, digitally enhanced and eco-friendly travel experiences,” Nikitek Founder & CEO Vinod Philips said.
