Cleartrip won’t be the only victim of the Covid-19-triggered economic slump in the travel sector
The entire online travel and ticketing sector is in the doldrums. Representational image. | PTI
A 14-year-old online travel company in India has fallen victim to the Covid-19-triggered economic slump – and it might be the first of several.
On April 15, e-commerce giant Flipkart said it will acquire Cleartrip, a Mumbai based-based flight and hotel booking portal, for an undisclosed amount
. Some media reports have pegged the deal at around $40 million (Rs 299 crore). In 2019, Cleartrip had posted a revenue of $100 million and registered gross bookings to the tune of $1.5 billion.
Flipkart acquires Cleartrip; to retain all employees
e-commerce marketplace Flipkart has announced the proposed acquisition of Cleartrip. Flipkart will acquire 100 per cent of Cleartripâs shareholding, as the company further enhances its investments to strengthen its digital commerce offerings for customers.
This transaction was in line with Flipkartâs strategy to diversify into product lines and categories via the M&A route and drive more GMV (gross merchandise value).
Under the terms of the agreement, Cleartrip operations will be acquired by Flipkart. Cleartrip will continue to operate as a separate brand, retaining all employees while working closely with Flipkart to further develop technology solutions to make travel simple for customers.
April 16, 2021
A 14-year-old online travel company in India has fallen victim to the Covid-19-triggered economic slump and it might be the first of several.
On April 15, e-commerce giant Flipkart said it will acquire Cleartrip, a Mumbai based-based flight and hotel booking portal, for an undisclosed amount
. Some media reports have pegged the deal at around $40 million (Rs299 crore). In 2019, Cleartrip had posted a revenue of $100 million and registered gross bookings to the tune of $1.5 billion.
“This is a distress sale but not so surprising as most travel firms have faced unprecedented stress due to Covid 19,” said Anindya Ghose, Heinz Riehl Chair professor of business at New York University’s Stern School.
Flipkart acquires online travel tech company Cleartrip
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Walmart-owned Flipkart said it will acquire Cleartrip, an online travel technology company. Flipkart will acquire 100% of Cleartrip’s shareholding as the company further enhances its investments to strengthen its digital commerce offerings for customers, a statement said.
Under the terms of the agreement, Cleartrip operations will be acquired by Flipkart and Cleartrip will continue to operate as a separate brand, it added. All employees of Cleartrip will be retained and work closely with Flipkart to further develop technology solutions to make travel simple for customers. The company, however, did not disclose the value of the deal.
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Cleartrip, which partnered with Amazon in 2019 to sell India domestic flights, will be acquired by an Amazon rival, Flipkart.
Flipkart, which has 300 million registered users and features a product marketplace primarily in India, and Cleartrip, the online travel agency, announced the deal Thursday. Earlier, The Economic Times had reported the deal was likely and that the distressed sale would have a $40 million price tag.
Both brands would continue to operate independently, the companies said, pending the closing of the transaction and regulatory approvals.