Flipkart might buy controlling interest in travel aggregator Cleartrip
Author : Pankaj Singh | Published Date : 2021-03-04
Ecommerce giant Flipkart is reportedly in talks to acquire a controlling share in online travel aggregator Cleartrip, further allowing it to boost its footprint in the highly competitive marketplace.
The move by Walmart-owned Flipkart is intended to take on contemporaries such as EaseMyTrip, Booking.com, Yatra, and MakeMyTrip, among others, sources with relevant information cited.
The discussions are currently active, and the anticipated deal is primarily for acquiring a considerable stake in Cleartrip. However, the talks may or may not necessarily turn into a transaction.
The recent development reflects on Flipkart's plan of diversifying and expanding into new product lines and categories through acquisitions in order to increase its gross merchandise value (GMV). If the transaction is finalized, it will be an advantageous purchase for the company during the COVID-19 period.
It is to be noted that, however, the financial performance of Cleartrip has been hampered due to travel and border restrictions imposed following the outbreak of COVID-19. In addition to India, the travel aggregator also operates in Saudi Arabia, the UAE, and Egypt.
Top e-commerce companies, such as Amazon, Flipkart, and Paytm, are looking to adopt the super-app strategy and have a presence in every market area, including food delivery, shopping, payment services, and travel.
It is also worth mentioning that Amazon India had too partnered with Cleartrip in May 2019 to add a flight booking option to its Amazon Pay payment service. In April 2018, Flipkart had entered the online travel space, partnering with Makemytrip to sell the latter's travel services on its website.
If the Cleartrip deal is finalized, Flipkart will acquire a company with robust recall value, as well as its customers and members, sources claimed. It will also assure the presence of an in-house brand, with direct business supply from hotels and airlines.
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About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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