Flipkart buys 100% of the capital of Cleartrip; consolidate its position in travel booking
Flipkart, the Walmart-backed electronic communications giant, has acquired 100% stake in Cleartrip, one of India’s oldest online travel technology companies. The acquisition of Cleartrip will strengthen Flipkart’s digital commerce offerings for customers. As per the agreement, all Cleartrip operations will be acquired by Flipkart. But Cleartrip will continue to operate as a separate brand, retaining all employees while working closely with Flipkart “to develop more technology solutions to make travel easier for customers.”
According to Flipkart CEO Kalyan Krishnamurthy, the deal will help Flipkart transform the customer experience through digital commerce. “Cleartrip means travel for many customers, and as we diversify and explore new areas of growth, this investment will help strengthen our broad range of customer offerings,” he said.
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Cleartrip co-founder and CEO Stuart Crighton said Cleartrip has been a pioneer in capitalizing on technology to simplify the travel experience. “This product focus has allowed us to become the preferred travel partner for consumers in a wide range of markets in the region. We are thrilled to be part of the Flipkart family.
Cleartrip is the latest addition to the list of acquisitions of the Indian Walmart-owned e-commerce company in various industries. The acquisition of Cleartrip strengthens the position of the Flipkart group in India, which already has Myntra, PhonePe, eBay, Ekart, Jeeves, Jabong and Flipkart Wholesale as subsidiaries.
Cleartrip, on the other hand, is the leading online travel and leisure aggregator, founded in 2006. It specializes in the latest online solutions for a complete and personalized travel experience.
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Hrush Bhatt, Matthew Spacie and Stuart Crighton founded Cleartrip in 2006 as an air travel and hotel booking aggregator. The deep shock to the travel and tourism industry due to the coronavirus pandemic has driven Cleartrip into distress.
Before the pandemic and the lockdowns that followed, Cleartrip faced stiff competition after Naspers merged MakeMyTrip and its holding company GoIbibo in 2016. Naspers then sold its stake in the company to Chinese firm Ctrip and left. the tough market. Cleartrip has also come under pressure with the entry of other players like EaseMyTrip, Booking.com and Yatra into the space.
With the support of Flipkart, Cleartrip will be able to face the turbulent and competitive travel and tourism industry.