The Adani Group, led by billionaire Gautam Adani, announced that it will invest in Cleartrip Pvt Ltd and acquire a sizable minority stake in the online travel aggregator, which is a subsidiary of Walmart-owned Flipkart Group.
Delighted to expand our partnership with Flipkart. Data centres, logistics and now travel. Thank you @_Kalyan_K. Our SuperApp journey will take wing with our investment in @Cleartrip. Energising the travel sector will create thousands of jobs in the post-pandemic era. Jai Hind. pic.twitter.com/BH74FOziKU
— Gautam Adani (@gautam_adani) October 29, 2021
The financial details of the transaction were not disclosed by the companies. The transaction, however, is expected to close next month and is subject to regulatory approvals. The Adani Group and the Flipkart Group will leverage synergies that will offer stronger travel experiences to customers when the Indian travel industry rebounds.
The announcement comes months after the company announced a strategic partnership with Flipkart to build a data center and a logistics hub. Cleartrip will function as the group’s online travel agency partner as part of the investment, Adani Enterprises said in a stock exchange filing late Friday.
The investment is an “essential part” of the Adani Group’s bigger SuperApp ambitions, according to Gautam Adani, chairman of the Adani Group. Adding further he said, “It is such strategic partnerships among homegrown companies which will eventually create local jobs as well as an Atmanirbhar Bharat.”
The Adani Group’s growing emphasis on the new economy emerges as the Covid-19 pandemic has triggered digital adoption in India, with other mega-corporations such as Reliance Industries and the Tata Group also strengthening their stakes in new-age companies. In contrast, the Tatas are building their own SuperApp.
Cleartrip has seen a tenfold increase in flight bookings after being acquired by the Flipkart Group. In addition, Adani airports have observed that the number of passengers at airports has rebounded, surpassing pre-covid highs. This partnership will empower Cleartrip to breakthrough digital hurdles and deliver end-to-end travel services online.
The companies in a joint statement said, Cleartrip’s flexible and efficient technological infrastructure, user-friendly interface, and industry-first innovations have made it one of India’s most recognized travel brands. This, combined with Flipkart’s strong consumer-focused expertise and an experienced leadership team, has helped the company maintain its dominant position in the Online Travel Agency (OTA) market in the recent few months.
Cleartrip seeks to provide consumers with a smooth travel experience and speed up its development by partnering with the Adani Group in sectors such as travel-related products, loyalty programs, among other value-added services.
Flipkart revealed its proposal to the takeover of Cleartrip earlier this year. It was announced that Walmart-owned Flipkart will acquire 100 percent of Cleartrip’s stakes as the company expands its efforts to expand its digital commerce services for customers.
According to the terms of the agreement, Cleartrip’s operations would be bought by Flipkart. Cleartrip will continue to exist as an independent brand. It would hold all workforce while cooperating with Flipkart to develop new technology solutions to make travel convenient for customers. The financial details of the transaction were not disclosed by Flipkart, but the deal was reportedly valued at around $40 million.