June 21, 2016: ClearTrip, online travel portal has raised a fresh round of funding from Concur Technologies and Gund Investment along with its existing investors. The company has raised $75 million so far according to President and Chief Operating Officer, Samyukth Sridharan. It has also raised an internal round from its existing investors during Feb-Mar of 2016.
“On the funding side we maintain that we have enough capital to run our business for the next couple of years,” said Samyukth Sridharan.
It has launched a segment called “Local” on its app to differentiate itself and compete with the heavily funded travel portals like MakeMyTrip and GoIbibo. It will aid consumers to book places in the city ranging from food joints to yoga classes and adventure sports like Dirt Biking with four sub-categories- events, fitness, food and adventure. Activities segment that was launched in the mid of 2015 is only now divided into four segments.
The company estimates that people spend close to 40 weekends at home and it is foreseen as a big market. “Activity is probably about half the size of the travel market itself in terms of consumers but it is extremely fragmented. Travel business in India is roughly $6-7 billion,” he said.
The average ticket size of these activities is Rs.300-350 per person, much smaller than travel as compared to the average ticket size in domestic travel which is roughly Rs.8,000-9,000 while on international routes it is Rs.24,000-25,000.
Cleartrip claims to be earning a margin of 15-20% from its hotel and activities businesses and a margin of 5-6% from the flights business.
In January this year, MakeMyTrip raised $180 Mn from Ctrip.com International Ltd, followed up by Naspers Group’s $250 Mn in Ibibo Group, which owns and operates Goibibo in February.