Flipkart Acquires Cleartrip to Expand Travel Offerings

Flipkart, the e-commerce company owned by Walmart, announced on Thursday an agreement to acquire Cleartrip, an online travel and hotel ticketing platform.

This acquisition is a strategic move for Flipkart, aiming to broaden its service portfolio within the Indian market, which ranks as the world’s second-largest internet market.

Deal Details and Market Context

Sources indicate the deal values the 14-year-old Cleartrip at approximately $40 million. Prior to the acquisition, Cleartrip had secured around $74 million in funding.

The sale is considered a distress sale, reflecting the significant challenges faced by travel companies globally due to the ongoing pandemic and the resulting decline in travel demand.

Reports regarding potential discussions between the two companies surfaced last month, as reported by the Indian news source MoneyControl.

Amazon's Role and Future Operations

Cleartrip currently functions as a partner to Amazon in India, providing the technology that powers the American e-commerce giant’s ticketing engine.

A partnership agreement between the two firms was established in 2019. TechCrunch inquired with Amazon regarding their awareness of, and approval for, Cleartrip’s potential acquisition by Flipkart.

However, Amazon, currently engaged in a legal dispute with its former Indian partner Future Group concerning a proposed sale to Reliance Retail, did not provide a response.

Future Plans and Integration

Following the acquisition, Cleartrip will maintain its brand identity and continue operations as a distinct entity.

All existing employees will be retained, and the company will collaborate closely with Flipkart to enhance technology solutions and streamline the travel experience for customers.

Flipkart has reportedly been developing the capability to offer flight ticket purchases on its platform for over a year.

Kalyan Krishnamurthy, CEO of the Flipkart Group, stated that the company is dedicated to improving customer experiences through digital commerce.

He emphasized that Cleartrip’s reputation in the travel sector, combined with its technology and industry expertise, will be valuable assets as Flipkart expands its offerings and provides enhanced travel solutions to its customer base.