Online travel aggregator Cleartrip has acquired Saudi Arabian online travel aggregator Flyin for an undisclosed amount.
Online travel aggregator Cleartrip has acquired Saudi Arabian online travel aggregator Flyin for an undisclosed amount. The transaction will close after the final regulatory and corporate approvals. With this acquisition, the combined entity will have over 60% market share in West Asia. The company said the acquisition was aimed at strengthening its presence in the West Asian market.
Cleartrip founder and CEO Stuart Crighton said: “We entered the Middle East (West Asia) five years ago and realised there were a lot of opportunities to localise and cater to the regional demand. The acquisition will help in improving our profitability due to the scale of operations.” Founded in 2008 by Abdullah Al Romaih, Flyin provides integrated travel services and innovative solutions for customers across the Middle East (West Asia) North African region and around the world. It has access to more than 320,000 hotels and 450 airlines. Al Romaih said: “Cleartrip will also help us offer our customers new and enhanced travel experiences.”
Apart from strengthening the presence in the West Asian region through this buyout, Cleartrip expects to strengthen its position in the Indian market. Currently, the domestic market is dominated by other players such as MakeMyTrip and Yatra. MakeMyTrip has the backing of entities such as Naspers, and earlier this year, they formed a partnership with Flipkart to give customers travel options. In the hotels and accommodations segment, Cleartrip is against OYO, which is backed by VC heavyweights such as Sequoia Capital, Lightspeed Ventures and SoftBank. Treebo is another competitor, backed by SAIF Partners.
“We see demand from strong demand from Indian travelling to the Middle East (West Asia), especially to Dubai,” Crighton said. Cleartrip was founded in 2006 by Crighton, Hrush Bhatt and Matthew Spacie and is based out of Mumbai. It provides services in air, accommodation and experiences categories, with over 10 million flight tickets and 1.5 million hotel room nights sold annually.
Till date, Cleartrip has raised $70 million from Concur Technologies, Draper Fisher Jurvetson, DAG Ventures and Gund Investment Corporation. The Flyin acquisition was helped by new and existing investors, the CEO said.