Yahoo Finance Flipkart to acquire online travel firm Cleartrip
Flipkart said on Thursday it has agreed to acquire online travel and hotel ticketing firm Cleartrip as the Walmart-owned e-commerce firm looks to expand its offerings in the world's second-largest internet market.
The deal values 14-year-old Cleartrip, which raised about $74 million prior to the acquisition, at about $40 million, a person familiar with the matter told TechCrunch. The distress sale comes as Cleartrip, like most other travel firms, faces unprecedented stress amid the global pandemic that has severely diminished people's appetite to move around.
Indian news outlet MoneyControl reported about the two companies exploring the deal last month.
Cleartrip raised about $74 million prior to selling to Flipkart for $40 million. (Data: Tracxn)
Cleartrip is also a partner of Amazon in India, powering the ticketing engine for the American e-commerce group. The two firms inked a deal in 2019. TechCrunch asked Amazon earlier this week if it was aware and fine with its vendor partner exploring a buyout deal with Flipkart. The American e-commerce firm, which is currently fighting a court battle to block its estranged Indian partner Future Group from selling business to Reliance Retail, did not respond.
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," the two companies said today.
Flipkart has been rumored to be working for more than a year on introducing a flight tickets purchase feature on its marketplace.
"The Flipkart Group is committed to transforming customer experiences through digital commerce. Cleartrip is synonymous with travel for many customers, and as we diversify and look at new areas of growth, this investment will help strengthen our wide range of offerings for customers. We welcome the Cleartrip team with their deep industry knowledge and technology capabilities to the Flipkart Group and look forward to providing deeper value and travel experiences for customers together," said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement.
This is an appreciation tweet for everyone who has been a part of the @Cleartrip journey.
From 2007, you showed us all what 'product design' and 'product experience' is when practically no one knew what magic it could do. Thank you the inspiration 🙏
— pj (@BeingPractical) April 15, 2021
