Al Tayyar – a Saudi Arabia-based travel agency – has fully acquired Saudi OTA, Almosafer, after upping its stake by 40% for just under USD$19 million.
Al Tayyar had first acquired a 60% stake of Almosafer back in 2015 for approximately $6 million. The acquisition puts Almosafer’s startup valuation at $47 million.
Founded in 2012, Almosafer today, is one of the leading OTAs in Saudi and some other countries of the region, receiving over a million monthly online visitors. The Al Tayyar Group is one of the largest tourism and travel companies in Saudi Arabia.
Almosafer saw 243% year-on-year growth in 2017, generating roughly $222 million (832.2 million Saudi Riyal) for Al Tayyar in sales, throughout the year. By comparison, Al Tayyar’s in-house digital travel brand, Tajawal, generated $113 million ($424.5 million Saudi Riyal), making Almosafer the larger contributor to Al Tayyer’s online revenue.
The acquisition positions Al Tayyar as a market leader in MENA, coming out ahead while competitors are still developing their online travel capabilities. Al Tayyar is also an investor in Careem – a ride-hailing app – and e-commerce platform, Wadi.com. The move is regarded as a strong indicator of the growth of online travel in the region.
