E-commerce giant Flipkart is on the verge of acquiring a controlling stake in online travel aggregator Cleartrip as per reports.
Flipkart’s strategy is to diversify and expand into different product lines and categories to drive moregross merchandise value.
Walmart’s e-commerce entity in India aims to outperform it’s incumbents such as MakeMyTrip, Yatra, Booking.com and EaseMyTrip.
This is due to Nation’s economic recovery as more Indians are now looking forward to engage in revenge tourism.
Moreover, online travel startups have steadily picked up post the lifting of Covid-19 restrictions in India and several other countries.
The deal will also give an exit to Cleartrip’s key investors like Concur Technologies, DAG Ventures and Gund Investment Corporation.
However, Cleartrip’s financial health deteriorated due to the travel and border restrictions globally following the COVID-19 pandemic’s outbreak.
It also has operations in the United Arab Emirates, Saudi Arabia and Egypt respectively.
Earlier in October 2016, MakeMyTrip acquired rival Ibibo group in a $1.8 billion deal.
Cleartrip also offers train bookings as an official partner of the Indian Railways Catering and Tourism Corporation.
This will enable Flipkart to directly offer train bookings through its platform, something which it currently does not.
Amazon too launched travel bookings in the same year as Flipkart, with its flight booking feature which Cleartrip incidentally overpowered.
Walmart acquired 77 percent of Flipkart for $16 billion in 2018 rivalling with Amazon Inc in the Indian ecommerce market.
Hrush Bhatt, Matthew Spacie and Stuart Crighton founded Cleartrip back in 2006. Further, it has successfully raised $56.4 Mn in six funding rounds from six investors.
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