Flipkart acquires Cleartrip to strengthen its product portfolio in online travel booking

Indian E-commerce giant Flipkart has announced the 100% acquisition of online travel tech company Cleartrip. Reports suggest that the value of the deal is around $40 Million, part-cast and part-stock; the companies have not disclosed the same yet. But according to the company, Flipkart has acquired all of Cleartrip's operation, along with employees including its founders. Further, the Cleartrip will remain a brand of its own. The company also stated that they will work together to "further develop technology solutions to make travel simple for customers".

In the online travel marketplace, Flipkart and Amazon are at loggerheads, trying to enhance their portfolio with partnerships. For example, Flipkart had earlier struck a partnership with MakeMyTrip. It had also announced a similar tie-up with Ixigo in 2019. On the other hand, Amazon, in 2019, had announced a partnership with Cleartrip. Nevertheless, the acquisition comes at a time when Cleartrip has been suffering financially due to travel restrictions. The deal closing is still subject to applicable regulatory approvals, according to Flipkart.

From the leaders

Kalyan Krishnamurthy, the CEO, Flipkart Group, said, “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.”

Stuart Crighton, CEO and co-founder of Cleartrip, said, “Cleartrip has been a pioneer in capitalising on technology to simplify the travel experience for our customers. This product-driven focus has enabled us to become the preferred travel partner of choice for consumers in a wide range of markets in the region. We are delighted to be part of the Flipkart family. Weare excited about the positive impact this collaboration can have for our customers and the travel industry in general.”