Flipkart to diversify their portfolio with their deal with Cleartrip, a global travel company

  • The report says that the purchase would be in line with Flipkart’s strategy to diversify and grow into separate product lines like travel.
  • They first started the online travel section in 2018 by allowing MakeMyTrip’s travel services on its platform.
  • The travel page on the company’s website uses ixigo and enables one to book flight tickets.

Flipkart is in discussions to purchase a regulating stake in online travel aggregator Cleartrip, which would help the e-commerce giant to diversify its business and tap opportunities in the travel space. According to industry sources.“Negotiations are going on between the company and Cleartrip, whose commercial performance was hit due to the Covid-19 pandemic,” said a person in the matter. “It is eyeing several businesses such as insurance, financial services, and travel and sees it as a good chance to procure travel firms during the pandemic.”

The step will enable the company to take on travel companies such as MakeMyTrip, Booking.com, Yatra and EaseMyTrip. Flipkart expects growth in travel and tourism as the economy recovers from the pandemic.

 Cleartrip also offers train bookings as an official partner of the Indian Railways Catering and Tourism Corporation; therefore, now the company would directly offer train bookings through its platform.

In 2018, Flipkart established a strategic partnership with MakeMyTrip in the travel services division. The aim was for MakeMyTrip’s various brands —including Goibibo, MakeMyTrip and redBus — to expand Flipkart’s large customer base to help in online bookings in travel services.

In 2019, Flipkart increased its travel offering by introducing an improved native experience in cooperation with Ixigo, a mobile travel app. Last year, Its rival Amazon India, partnered with IRCTC. Unexpectedly, last year, Amazon also partnered with Cleartrip to add a flight-booking service to Amazon Pay.

Cleartrip announced a loss of Rs 14 crore in FY20, a 53 percent decrease correlated with the previous year, and revenues of Rs 319 crore.