Fkipkart's acquisition of Cleatrip, which has been staggering from the coronavirus pandemic, should inject some much-needed funds and energy. Look for Cleartrip's partnership with Amazon to fade away.
Cleartrip, which partnered with Amazon in 2019 to sell India domestic flights, will be acquired by an Amazon rival, Flipkart.
Flipkart, which has 300 million registered users and features a product marketplace primarily in India, and Cleartrip, the online travel agency, announced the deal Thursday. Earlier, The Economic Times had reported the deal was likely and that the distressed sale would have a $40 million price tag.
Both brands would continue to operate independently, the companies said, pending the closing of the transaction and regulatory approvals.
“Cleartrip has been a pioneer in capitalising on technology to simplify the travel experience for our customers,” Cleartrip co-founder and CEO Stuart Crighton said in a prepared statement. “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.”
No word yet on how the collaboration would Flipkart might impact Amazon’s partnership with the Indian online travel agency, which was founded in 2006.
The Daily Newsletter
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Photo credit: A Cleartrip tech office in 2007. Flipkart will acquire Cleartrip. Baishampayan Ghose / Flickr