On Thursday, Flipkart announced that it is acquiring the online travel company, Cleartrip. The amount of this deal is undisclosed. Having owned ClearTrip will allow Flipkart to strengthen its online presence and give a strong competition to Amazon.
Even though Flipkart and Amazon both offer ticket booking services still the key players in the department have been companies like MakeMyTrip and ClearTrip.
While Flipkart will acquire all of their operation, ClearTrip will still function as a separate entity according to the agreement made public by them via a press statement. The agreement is question also states that Flipkart will acquire all of the shareholding of ClearTrip. However, ClearTrip will retain its employee base.
Flipkart partnered with MakeMyTrip in 2018 and in August 2019, it signed a deal with Ixigo. However, since then, because of Covid, travel industry has been going to some real struggle.
“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,” said Kalyan Krishnamurthy, CEO, Flipkart Group
“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,” said Stuart Crighton, CEO and co-founder of ClearTrip.
Flipkart is now stepping into the travel aggregators market. Where there are many big names already such as Goibibo, Yatra and MakeMyTrip. And this step is taken by the company when people are reluctant to travelling. Because of the ongoing pandemic caused by coronavirus.
Flipkart has not disclosed the price at which this deal is closed. But it is reported to be around $40 million.