As per the announcement made by Flipkart on Thursday, it will soon acquire Cleartrip, an online and hotel ticketing firm. The acquisition is in line with the Walmart-owned-e-commerce firm’s plans of expanding its offerings in the second largest internet market in the world.
The Acquisition
The 14-year old Cleartrip will be valued at $40 million in the deal. Prior to the acquisition, Cleartrip had also raised an amount of $74 million. The global pandemic which posed a roadblock in the growth and progress of most travel firms is a major catalyst behind Cleartrip’s distress sale. Travel firms around the world are facing unprecedented stress and challenge as all of a sudden business has come to a standstill with people losing appetite to travel and explore due to the fear of the pandemic.
Cleartrip also has to its credit a partnership with Amazon in India. The firm powers the ticketing engine for the American e-commerce group. The two firms, Amazon and Cleartrip, got into the partnership deal back in 2019. When enquired about its status regarding its partner firm exploring a buyout with Flipkart, the firm refused to respond. Amazon is currently fighting a suit to stop Future Group, its estranged Indian partner from selling business to Reliance Retail.
As per the reports from the two companies, post the buyout, Cleartrip will continue its operations as a separate brand. It will retain all its staff and employees while working in close connection with Flipkart. The main objective will be to facilitate the development of technological solutions which will make travel easier and convenient for customers around the world.
Earlier, there had been rumors concerning Flipkart’s plans to introduce a purchase feature for flight tickets. With the acquisition at hand, the rumors touch the line of reality.
According to the Flipkart Group CEO, Kalyan Krishnamurthy,
“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. We welcome the Cleartrip team with their deep industry knowledge and technology capabilities to the Flipkart Group and look forward to providing deeper value and travel experiences for customers together”
This is an appreciation tweet for everyone who has been a part of the @Cleartrip journey.
From 2007, you showed us all what 'product design' and 'product experience' is when practically no one knew what magic it could do. Thank you the inspiration 🙏
— pj (@BeingPractical) April 15, 2021
