Flipkart, being a very close rival of the e-commerce giant Amazon, plans to diversify its line of business. It has finalized on buying the online travel company Cleartrip, for a deal of $40 million. Flipkart had been looking for newer avenues of growth and this proved to be a great opportunity for them.
Flipkart, a Bengaluru-based e-commerce company, is backed by Walmart in India with 77% of its stake. Now that it will get a complete share of Cleartrip, they plan to retain all the former employees of Cleartrip too.
Cleartrip was an online travel booking platform launched in the year 2006 by Hrush Bhatt, Stuart Crighton, and Matthew Spacie. It was one of the first online travel companies in India. The headquarters of Cleartrip were based in India and Dubai and they catered to the travel needs of people in India as well as the Middle East.
As the wave of pandemic struck, it was a difficult phase for the majority of the travel companies, including Cleartrip. Thus, to cope up with the situation, this deal with Flipkart has been the best thing possible seeing the challenges in the near future regarding global and local travel conditions.
For Flipkart, this deal will bring in diverse travel product offerings such as local experiences that included food trails, workshops, and cycle rides around the cities, etc. In the coming times, Cleartrip will continue to have a separate brand identity besides Flipkart but both divisions will work closely together in order to expand the offerings of technological solutions in e-commerce and travel.
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