Flipkart said on Thursday it has agreed to acquire online travel and hotel ticketing firm Cleartrip as the Walmart-owned e-commerce firm glances to expand its provides in the world’s second largest internet market.
The deal evaluates 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 travelling conglomerates, faces unprecedented stress amid the world pandemic that has severely slowed down people’s appetite to move around.
Indian news outlet MoneyControl reported about the two companies exploring the spate last-place month.
Cleartrip is also a partner of Amazon in India, powering the ticketing engine for the American e-commerce group. The two houses inked a deal in 2019. TechCrunch expected Amazon earlier this week if it was aware and fine with its vendor marriage 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 enterprises 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 stir hasten simple for customers ,” the two companies said today.
Flipkart has been rumored to be working on introducing flight tickets acquisition piece on its marketplace for over a year.
” The Flipkart Group have the obligation to transforming purchaser knows through digital industry. Cleartrip is synonymous with trip for countless purchasers, and as we diversify and look at new areas of growth, this investment will help strengthen our wide range of renders for customers. We welcome the Cleartrip team with their penetrating industry learning and technology capabilities to the Flipkart Group and look forward to providing deeper value and traveling know-hows for customers together ,” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement.
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