Flipkart, India's homegrown e-commerce marketplace on April 15 announced the proposed acquisition of Cleartrip, a leading online travel technology company. Flipkart will acquire 100 percent of Cleartrip’s shareholding, as the company further enhances its investments to strengthen its digital commerce offerings for customers.
Moneycontrol was the first to report the deal discussions on March 1, 2021, and had indicated that the proposed transaction was in line with Flipkart’s strategy to diversify into product lines and categories via the m&a route and drive more GMV
(gross merchandise value).
Later on April 13, 2020, Moneycontrol reported that deal talks between both parties are in the final stages and that an official announcement was likely to be made shortly.
Under the terms of the agreement, Cleartrip operations will be acquired by Flipkart. Cleartrip will continue to operate as a separate brand, retaining all employees while working closely with Flipkart to further develop technology solutions to make travel simple for customers.
Kalyan Krishnamurthy, 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 and are excited about the positive impact this collaboration can have for our customers and the travel industry in general."
SAP Concur, a key investor in Cleartrip told Moneycontrol, "Concur Technologies has reached an agreement to sell its stake in Cleartrip to Flipkart, pending regulatory approval."
Flipkart also added that the deal closing would be subject to applicable regulatory approvals.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
