Flipkart said on Thursday it has agreed to acquire online travel and hotel ticketing firm Cleartrip whilst 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 the majority of other travel firms, faces unprecedented stress amid the global pandemic that has severely slowed down people’s appetite to maneuver around.
Indian news outlet MoneyControl reported about the two businesses exploring the deal last month.
Cleartrip is also a partner of Amazon in India, powering the ticketing engine for the American e-commerce group. Both 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 organizations said today.
Flipkart has been rumored to be working on introducing flight tickets purchase feature after its marketplace for over per annum.
“The Flipkart Group is committed to adjusting customer experiences through eletrônica commerce. Cleartrip is associated with travel for many potential customers, and as we diversify and peruse at new areas of finest, this investment will help enhance our wide range of offerings for customers. We welcome the Cleartrip team with their deep companies knowledge and technology expertise to the Flipkart Group and look forward to providing deeper market price and travel experiences for customers together, ” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement.