Adani Group to invest in Cleartrip, deepens strategic ties with Flipkart

The Adani Group, India’s fastest-growing diversified conglomerate, said that it is investing in Cleartrip Private Limited, an online travel aggregator (OTA) and part of the e-commerce firm Flipkart Group. As part of this investment, the Adani Group will acquire a significant minority stake in Cleartrip. The companies didn’t reveal the value of the transaction.

Through this investment, the Adani Group and the Flipkart Group will benefit from synergies that will deliver superior travel experiences to consumers as the travel industry in India sees a resurgence. Since the acquisition by the Flipkart Group, Cleartrip has seen 10x growth in flight bookings. Also, trends observed by Adani airports indicate that the number of passengers at 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.

“We have a strongly developing relationship with Flipkart that spans multiple dimensions including data centres, fulfilment 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.”

The investment will further enhance the strategic partnership between the Adani Group and the Flipkart Group, as both parties work towards serving Indian consumers with a wide gamut of digital offerings. As a part of the investment, Cleartrip will also serve as the Adani Group’s OTA partner.

“At the Flipkart Group, we are focused on delivering experiences for consumers and providing opportunities to help them fulfil their aspirations,” said Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group. 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 and will explore ways in which we can expand our offerings for consumers, leveraging their robust travel infrastructure in the country.”

The companies said that Cleartrip’s scalable technology stack, user-friendly interface and industry-first initiatives have made it one of the most loved travel brands in India. This, along with an experienced leadership team and Flipkart’s deep consumer-focused experience, has helped the company stabilize its prominent position in the OTA space over the last 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.

The deal is expected to close in November 2021, subject to customary closing conditions.

Early this year, Flipkart announced its proposed acquisition of Cleartrip. It said that Walmart-owned Flipkart will acquire 100 per cent of Cleartrip’s shareholding, as the company further enhances its investments to strengthen its digital commerce offerings for customers.

It had said that under the terms of the agreement, Cleartrip operations will be acquired by Flipkart. Cleartrip will continue to operate as a separate brand. It would retain all employees while working closely with Flipkart to further develop technology solutions to make travel simple for customers. Flipkart didn’t reveal the transaction’s financial details, but the deal value was reportedly about $40 million.

Also, this year Flipkart formed a strategic and commercial partnership with the Adani Group, India’s largest multinational infrastructure company. In this two-pronged partnership, Flipkart is working with Adani Logistics Ltd to strengthen the e-commerce firm’s supply chain infrastructure. The tie-up will enhance Flipkart’s ability to serve its rapidly growing base of customers.

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