Reliance Web World launches pilot project with yatra.com

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Anil Ambani-controlled Reliance Capital, which has equity participation in online travel solutions provider yatra.com, has launched a pilot project through its telecom entity, Reliance Web World (RWW).

RWW will book hotels online for yatra.com, which will earn a commission for the former.

RWW is a chain of retail stores for digital entertainment and communication and serves as a one-stop shop for Reliance Infocomm, the telecom venture of Anil Ambani's ADAG.

According to Nikhil Rungta, head of marketing, Yatra Online Pvt Ltd, "This will help us increase our presence without setting up branches. We have launched the pilot project across 48 centres in three cities, initially--- Kolkata, Mumbai and Bangalore. The travel desks in RWW outlets will handle the operations."

It will be rolled out on a pan India basis depending on the success of the 6-month project, Rungta said.

Yatra.com was launched in August 2006. Three investors---Reliance Capital, the Television 18 Group, and Norwest Ventures Partners---had pumped $10 million into it. While Reliance Cap and TV 18 are strategic investors, Norwest is a venture capital investor.

Yatra.com, which is second in the $750 million online travel industry with a 25% market share, wants to increase its revenue to $120 million by the end of 2007. The industry expects to grow to $1.2 billion by 2007 and to $2 billion by 2008.

"We have posted an average revenue of $5 million a month with a volume of 2,500 tickets and 150 rooms a day. The company expects to break even by the end of 2008," Rungta said.