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Mumbai-based online travel agency, Cleartrip, is looking to expand operations in India and West Asia.
The portal, which offers both flight and hotel booking services, recently made its first cross-border acquisition, acquiring Saudi Arabia-based Flyin for an undisclosed amount. Post acquisition, the combined entity will have a market share of 60 per cent in West Asia.
Cleartrip was founded in 2006 and began West Asia operations 4-5 years ago.
Stuart Crighton, Co-founder & Global CEO at Cleartrip, said the company is eyeing an increased presence in the GCC (Gulf Cooperation Council) countries such as Kuwait, Bahrain, Saudi Arabia and Qatar. It is also looking at foraying into Egypt.
A growing aviation market with the advent of new carriers such as FlyDubai, AirArabia, and Pegasus Airlines is one reason for eyeing the expansion there. The online accommodation-booking space is also witnessing growth. In fact, expansion of product lines and content should help further.
“If we execute well, we are confident of building a good regional story. West Asia is growing at around 50 per cent year-on-year and over the next 12-15 months, our revenue contribution between India and the West Asian region should be around 50-50,” he told BusinessLine .
The West Asian segment, along with other global market operations, contributes approximately 40 per cent of its over $100-million turnover. Although operations are “minorly negative”, they are expected to break-even “soon”.
The India business accounts for 60 per cent of its revenues and is breaking-even (EBITDA positive), but is yet to be net profit positive. “Anything beyond EBITDA is ploughed back into the business,” he said.
India business
According to Crighton, the company has been witnessing a near 28 per cent year-on-year growth in India and remains “very bullish” about the country.
A recent report by PwC India and Nasscom states that India’s e-commerce market of $35 billion is expected to grow at 25 per cent over the next five years and exceed $100 billion by 2022. E-tail and e-travel will continue to hold over 90 per cent share of e-commerce.
“India remains a focus market and we continue to explore opportunities to introduce new products and services to augment our offerings here,” he said, adding that learning from India market has been successfully implemented elsewhere.
Air ticket booking continues to be the most profitable vertical here.
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