Flipkart on Thursday announced that it will be acquiring Cleartrip, an online travel technology company. The e-commerce company announced that there will be the acquisition of 100% of Cleartrip’s shareholding, as the company further wants to expand its investments to strengthen its digital commerce options for customers.
As per the terms and conditions of the agreement, Flipkart is acquiring the operations of the Cleartrip. However, Cleartrip will continue to work as a separate brand, retaining all employees while working in Knitty-gritty with Flipkart for developing or advancing technology solutions that will be focused on making travel easier for customers. The closing deal is yet to be applicable for regulatory approvals, according to Flipkart.
Flipkart will get access to some 80-100 million consumers who prefer using online services for hotel reservations, air tickets but do not necessarily buy products on e-commerce websites like Flipkart and Amazon.
Around 500-600 million Indian data users, about 250 million consumers purchase services online but only around 150 million out of the total buy products. “With the acquisition, it will be easier for Flipkart to convert the service buyers into product buyers,” said Madhur Singhal, managing partner & CEO at Praxis Global Alliance.
Walmart-led E-commerce company Flipkart, a competitor of Amazon and Reliance in India is doubling down on the country which has seen massive growth in the market share. The pandemic-led digital push has increased the demand for e-commerce services and old market players like the Tata Group are also entering the foray to leverage the opportunity.
Walmart president and CEO Doug McMillion commented on the nature of the Indian market and said that it is one such market where the company will “step on the gas” to double-sure that it has appropriate levels of investments in relevant areas.
On the deal, Kalyan Krishnamurthy, CEO, Flipkart Group, commented, “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 and are excited about the positive impact this collaboration can have for our customers and the travel industry in general.”