Adani Enterprises Limited has acquired a minority stake in online travel aggregator Cleartrip Pvt Ltd from Flipkart Marketplace Pvt Ltd, to boost super app strategy, the company said in a stock exchange announcement.
This investment from Adani comes six months after Walmart-owned Flipkart acquired Cleartrip to diversify its offerings in a distress sale at the height of the coronavirus pandemic in India.
The deal size was not disclosed, but the statement said that Adani will have ‘board nomination rights and certain investment protection rights and certain obligations’ in the agreement.
“We have a strongly developing relationship with Flipkart that spans multiple dimensions including datacentres, fulfilment centers and now air travel,” said Gautam Adani, Chairman of the Adani Group. “The Cleartrip platform will become an essential part of the broader SuperApp journey we have embarked upon," he said.
Delighted to expand our partnership with Flipkart. Data centres, logistics and now travel. Thank you @_Kalyan_K. Our SuperApp journey will take wing with our investment in @Cleartrip. Energising the travel sector will create thousands of jobs in the post-pandemic era. Jai Hind. pic.twitter.com/BH74FOziKU
Both Adani and Flipkart will enter into a “strategic partnership” in areas such as “travel-related products, loyalty programs and other value-added services,” the statement said. With this deal, Cleartrip will become Adani Group’s OTA partner, it said.
Adani, which acquired control of the Mumbai International Airport Limited in 2020, said that trends from its airports indicate that thenumber of air passengers are reaching close to pre-Covid highs.
Adani Group also has the right to develop and operate six domestic and international airports in Jaipur, Lucknow, Mangaluru, Guwahati, Thiruvananthapuram and Ahmedabad.
It also owns a 23.5% stakein Airport Company of South Africa.
The deal is expected to close in November 2021, subject to customary closing conditions.
The companies said that Cleartrip has seen 10x growth in flight bookings, since the acquisition by the Flipkart Group in April.
“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,” Kalyan Krishnamurthy, chief executive officer, Flipkart Group said.