Tech Mahindra and AION Capital, a joint venture between global buyout investor Apollo and ICICI Venture, are in the race to acquire InterGlobe Technologies, The Times of India reported.

InterGlobe Technologies is the IT and back office arm of InterGlobe Enterprises, the travel conglomerate, which runs IndiGo airlines. The two bidders made separate offers 10 days back to acquire the company in a deal valued at around $400 million, multiple sources familiar with the matter told the newspaper.

Tech Mahindra, according to the paper, is seeking to scale up its presence in the travel and hospitality domain as they witnessed retail, transport and logistics contributing 6.2 percent to the company's revenue.

AION is keen on the travel company in order to build a larger business by mining the worldwide portfolio companies of buyout investor Apollo, the report said.