Abhishek Law Mumbai-based online travel and hospitality company, Cleartrip, is planning an IPO in the next two-three years. The immediate focus though is to turn profitable by FY20.

According to Aditya Agarwal, Head of Corporate Strategy and M&A, Cleartrip, some verticals of the company, such as flight-booking segment, is already reporting profits. Resources from these profitable verticals are being ploughed back into other lesser profitable ones such as hotel bookings and so on.

However, over the next 12-18 months the company would look to be EBITDA (earnings before interest, tax, depreciation and amortisation) positive.

“Ideally by FY20, we should definitely be EDITDA positive,” he told BusinessLine, adding that the company is “capital efficient”.

Incidentally, Agarwal pointed out that the company “may (also) consider” an IPO. But the IPO can happen two to three years down the line once a few “business objectives” are achieved.

Expansion plans

“The IPO plan is not definite. There are a few business objectives that have to be achieved first. But it (the IPO) may happen in the next two-three years,” he added.

According to Agarwal, the company is witnessing bookings to the tune of $1.5 billion and plans to take it to $2 billion over the next 12 months.

The company in a bid to boost bookings had previously introduced the ‘experiences’ feature. The feature is aimed at giving users the option to book tickets for attractions and events across the world.

This apart it has also introduced ‘Fare alert’, ‘Shortlists’, ‘Top deals’, ‘Date tabs’, ‘Improved multi-city’ and other features as part of its offerings in India.

Plans are afoot to introduce similar offerings for its West Asia business.

“We are looking at a 30-35 per growth in bookings here, driven primarily by the air ticket booking business,” he said.

Moreover, the company has stayed away from deep discounting across its portal. “As a conscious strategy, we have also been moving into newer markets which are into their shift from offline to online,” Agarwal said.

West Asia business

The portal made its first cross-border acquisition by acquiring Saudi Arabia-based Flyin for an undisclosed amount. The move is expected to consolidate Cleartrip’s West Asia business.

Post acquisition, the combined entity will have a market share of 60 per cent in West Asia that include the UAE, Saudi Arabia, Qatar, Kuwait, and others.

As a strategy, Cleartrip is actively looking to tap the North Africa market that include Egypt, Morocco, Algeria and the sub-Saharan regions, such as Nigeria and Kenya in the next phase of growth.

According to Agarwal, the company is open to organic and inorganic growth (that include further acquisitions) opportunities here.

“The next three to five years are important for us,” Agarwal said.

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