After Airports, Adani Group Enters Online Travel Business. Buys Minority Stake In Cleartrip
The Adani Group and the Flipkart Group will benefit from synergies that will enable them to provide improved travel experiences to consumers when the Indian travel market recovers.
Mumbai: Billionaire Gautam Adani-led Adani Group has acquired a significant minority stake in an online travel aggregator (OTA) Cleartrip Private Limited, a part of India's homegrown consumer internet ecosystem, the Flipkart Group.
The Adani Group and the Flipkart Group will benefit from synergies that will enable them to provide improved travel experiences to consumers when the Indian travel market recovers. Cleartrip has seen a tenfold increase in airline reservations after being acquired by the Flipkart Group. Adani airports have also noticed that the number of travelers using airports has increased, reaching close to pre-covid highs. This partnership will further enable Cleartrip to transcend digital boundaries and bring end-to-end travel services online.
The investment would strengthen the strategic cooperation between the Adani Group and the Flipkart Group, as both companies strive to provide a diverse range of digital services to Indian consumers. Cleartrip will also function as the Adani Group's OTA partner as part of the investment.
Cleartrip is one of India's most popular travel brands, thanks to its scalable technological stack, user-friendly design, and industry-first initiatives. This, combined with Flipkart's strong consumer-focused knowledge and an experienced leadership team, has helped the business maintain its dominant position in the OTA industry over the previous few months.
By collaborating with the Adani Group in areas such as travel-related products, loyalty programs, and other value-added services, Cleartrip aims to provide consumers with a seamless travel experience and further accelerate its growth.
Crucial quotes:
"We have a strongly developing relationship with Flipkart that spans multiple dimensions including data centres, fulfillment centers, and now air travel," said Gautam Adani, Chairman of the Adani Group. "It is such strategic partnerships among homegrown companies which will eventually create local jobs as well as an Atmanirbhar Bharat. The Cleartrip platform will become an essential part of the broader SuperApp journey we have embarked upon."
Speaking on the development, Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, "At the Flipkart Group, we are focused on delivering experiences for consumers and providing opportunities to help them fulfill their aspirations. As travel picks up over the next few months, Cleartrip will continue to focus on providing easy and flexible travel experiences for its customers. We strive to strengthen our relationship with the Adani Group. We will explore ways in which we can expand our offerings for consumers, leveraging their robust travel infrastructure in the country."
The deal is expected to close in November 2021, subject to customary closing conditions.
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