Cleartrip, an Online Travel Company, will be Acquired by Flipkart

Flipkart announced on Thursday that it has agreed to acquire Cleartrip, an online travel and hotel ticketing firm, as the Walmart-owned e-commerce firm seeks to expand its offerings in the world's second-largest internet market.

According to a person familiar with the matter, the deal values 14-year-old Cleartrip, which raised approximately $74 million before the acquisition, at approximately $40 million. Cleartrip, like most other travel companies, is under immense stress as a result of the worldwide pandemic, which has greatly reduced people's desire to travel.

Last month, Indian news outlet MoneyControl announced that the two firms were considering a merger.

Cleartrip is also an Amazon partner in India, powering the American e-commerce giant's ticketing engine. In 2019, the two companies signed an agreement. The American e-commerce company did not react, even though it is currently battling a legal battle to prevent its estranged Indian partner Future Group from selling business to Reliance Retail.

Cleartrip will continue to exist as a standalone brand, with all staff staying, while collaborating with Flipkart to “further create digital innovations to make travel easier for customers,” the two firms announced today.

Flipkart has been reported to be working on adding a flight ticket buying feature on its website for more than a year.

“Through digital commerce, the Flipkart Group is dedicated to improving customer experiences. For many customers, Cleartrip is synonymous with travel, and as we diversify and search for new areas of growth, this investment will further strengthen our diverse portfolio of customer offers. We welcome the Cleartrip team to the Flipkart Group, with their vast industry expertise and technological skills, and look forward to working together to provide greater value and travel experiences for customers,” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a tweet.