Flipkart set to acquire Cleartrip for USD 40 million in distress sale: Reports

New Delhi: Walmart owned Flipkart is all set to aquire online travel solutions provider Cleartrip, in what has been termed by several media outlets as a distress sale.

As per several financial daily reports, Flipkart-Cleartrip deal may be sealed in the next 10 days. The deal, to be a mix of cash and stock, is likely to value Cleartrip at around $40 million, reports further added.

The deal comes at a time when the travel and hospitality industry is going through a massive lull in the wake of COVID-19 pandemic. In fact, several airline companies have once again started demanding financial assistance package from the central government. In an important meeting of airline companies with the Secretary of the Ministry of Civil Aviation (MoCA) on Monday, most flight operators demanded financial assistance package from the government to deal with the second Covid wave, reported news agency ANI.

With the pandemic bringing about a change in consumer behaviour and an increase in online adoption, Flipkart has been focusing on enhancing consumer experiences through several investments. The e-tailer has been on a massive aquisition spree lately.

Meanwhile, with business severely affected due to the onslaught of the COVID-19 pandemic, the travel and tourism industry players want the government to provide targeted support to the sector, to help them meet their operating costs and retain jobs. Travel booking platforms too find themselves in a tight spot as the second wave of Covid-19 hit India and public movement is being restricted across states.