Flipkart to acquire Cleartrip to diversify its offerings
What's the story
On April 15, Walmart-owned Flipkart confirmed that it will acquire Cleartrip, a leading online travel technology company.
Moneycontrol reports that Flipkart will acquire 100 percent of Cleartrip's shareholdings. However, Cleartrip will continue to function as a separate brand after the acquisition.
The deal's closing is still subject to final approvals from applicable market regulatory authorities.
Details
Deal is part of Flipkart's strategy to diversify its portfolio
Moneycontrol was the first to report on the possibility of this acquisition in March 2021. At the time, its report suggested that the deal aligns with Flipkart's strategy to diversify its portfolio via mergers and acquisitions (M&A).
After its acquisition, Cleartrip will retain all its employees and will work closely with Flipkart to develop technology solutions that simplify travel for customers.
Building value
Flipkart Group CEO welcomes Cleartrip's 'deep industry knowledge, technology capabilities'
Flipkart Group's CEO, Kalyan Krishnamurthy said that Cleartrip is synonymous with travel and as Flipkart looked at new areas of growth, this investment would help the company strengthen its offerings for customers.
He welcomed the Cleartrip team's "deep industry knowledge and technology capabilities" into the Flipkart Group.
Flipkart looks forward to providing "deeper value and travel experiences for customers together" with Cleartrip, he said.
Expressing delight
Collaboration would make a positive impact for customers: Cleartrip co-founder
Voicing a similar sentiment, Cleartrip's co-founder and CEO, Stuart Crighton said that his company has been a pioneer in capitalizing on technology to simplify its customers' travel experience.
He added that Cleartrip is delighted to be a part of the Flipkart family and is excited about the positive impact the collaboration would have on customers.
Unclear financials
Flipkart reportedly paid $40 million for acquisition
The financial aspects of Flipkart's Cleartrip acquisition aren't confirmed yet. However, a recent Economic Times report estimated that the homegrown e-commerce giant would part with as much as $40 million to acquire the travel platform, in a distress deal of sorts.
Prior to this, Flipkart had expressed interest in the tourism sector when it partnered with MakeMyTrip in 2018 and with Ixigo in 2019.