Flipkart is owned by the American company Walmart ((Flipkart)).
Flipkart has put the value of Cleartrip at $ 40 million, the deal will be completed in the next 10 days
Flipkart Group is set to buy Cleartrip in a distressed sale. Distress sale means that Flipkart is doing this deal cheaply. Sources aware of this matter say that Flipkart wants to increase its reach in the hospitality sector. Significantly, Flipkart is owned by the American company Walmart ((Flipkart)).
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The entire deal will be in cash-and-stockSources reveal that the entire deal will be in cash-and-stock. Cleartrip’s value in this deal is $ 40 million. The deal is taking place at a time when the hospitality sector has been battered due to coronavirus infection. It is likely that the deal will be completed in the next 10 days. A source associated with Cleartrip said that the coronavirus infection has had a significant impact on the travel and hospitality sector. In such a situation, it has become difficult for the travel booking platform to remain in business.
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Now Flipkart does travel booking in partnership with Make My Trip
The acquisition of Cleartrip will allow Flipkart to enter directly into the travel and hospitality sector. Earlier, Flipkart used to offer travel booking in partnership with Make My Trip. Flipkart started a travel booking service in 2018 in partnership with Make My Trip. At the same time, this deal will allow Flipkart to cross-sell financial services like travel booking payments and insurance through Cleartrip. A Flipkart source said that Flipkart’s focus has been on the travel segment. Flipkart and Cleartrip have been in talks for the last 5 months. Now this deal will be completed in the next 10 days.
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Travel insurance along with flight booking
In September 2020, Flipkart partnered with Liberty General Insurance to make travel insurance available on Flipkart’s platform along with flight booking. However, a Flipkart spokesperson refused to say anything about this deal.