Flipkart, owned by Walmart, announced on Thursday that it would acquire Cleartrip, an online travel technology company. Flipkart will buy out all of Cleartrip's stock as part of a larger investment to expand the company's digital commerce offerings for customers.
Cleartrip's operations will be purchased by Flipkart under the terms of the agreement. Cleartrip will continue to operate as a separate brand, with all staff remaining in place, while working closely with Flipkart to create technology solutions that make travel more convenient for customers.
Cleartrip, which was established in 2006, provides a comprehensive and customised travel experience to its customers through its award-winning mobile and desktop solutions.
Flipkart was planning an initial public offering (IPO) at a $35 billion valuation. The company had considered going public through a special purpose acquisition company (SPAC), but it has since decided against it.
"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," Flipkart Group CEO Kalyan Krishnamurthy said.
The partnership will allow people to book rooms and flights online, and it is expected to improve Flipkart's overall gross merchandise value (GMV). Flipkart's entry into the digital travel market, which is already populated by leaders including MakeMyTrip, which recently acquired Goibibo, as well as Yatra and Booking.com.
Recently, Flipkart formed a strategic partnership with Adani Group to improve its logistics and data centre capabilities.
Cleartrip's company has been badly affected as a result of travel and border restrictions levied after the pandemic's outbreak. Cleartrip is also an Amazon affiliate in India, powering the American e-commerce giant's ticketing engine. In 2019, the two companies signed an agreement.
The deal closing will be subject to applicable regulatory approvals.