Flipkart, a Walmart-owned e-commerce giant is set to acquire Cleartrip, the online travel aggregator. The company today said in a statement that it will acquire 100% shareholding of Cleartrip and its operations.
Why FLipkart entering in Travel Industry
“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,” Kalyan Krishnamurthy, chief executive office of Flipkart Group said in a statement.
Flipkart had indicated its interest in travel when it had first partnered with MakeMyTrip in 2018 and then switched to Ixigo.
Cleartrip was founded in 2006 by Hrush Bhatt, Matthew Spacie and Stuart Crighton. After the acquisition, Cleartrip will continue to function as a separate entity and will retain all its employees. However, during the pandemic, Cleartrip had already laid off as many as 500 employees.
“Cleartrip has been a pioneer in capitalising on technology to simplify the travel experience for our customers. This product-driven focus has enabled us to become the preferred travel partner of choice for consumers in a wide range of markets in the region. We are delighted to be part of the Flipkart family and are excited about the positive impact this collaboration can have for our customers and the travel industry in general,” Stuart Crighton, co-founder of Cleartrip, said in a statement.
While the companies didn’t disclose any financial information regarding the deal, an ET report from earlier had said that Flipkart could dole out as much as $40 million to acquire Cleartrip.
Deal terms and Financial closing
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.
He added the Cleartrip team, with its deep industry knowledge and technology capabilities, will help Flipkart Group provide deeper value and travel experiences for customers. Stuart Crighton, CEO and co-founder of Cleartrip, said the company has been a pioneer in capitalising on technology to simplify the travel experience for our customers.
“This product-driven focus has enabled us to become the preferred travel partner of choice for consumers in a wide range of markets in the region,” he added. The deal closing will be subject to applicable regulatory approvals.