ONLINE travel marketplace Wego has signed a “definitive agreement” with India’s homegrown e-commerce company Flipkart Group to acquire the Middle East business of Cleartrip.
The transaction also includes the sale of Riyadh-based online travel agency Flyin.com, as well as a technology cooperation agreement between Wego and Flipkart.
Cleartrip, a pioneer of online travel in India, expanded organically into the Middle East in 2010 and acquired Flyin.com in 2018, both kick-starting online travel in Saudi Arabia.
The transaction is expected to close in the second half of 2022, subject to customary closing conditions and regulatory approvals. Rothschild and Co. were exclusive advisors to Flipkart on this transaction.
Financial terms of the acquisition have not been disclosed,
The acquisition will see Wego’s Ross Veitch (left) and Cleartrip’s Stuart Crighton working together to expand their footprint in the Middle East.
Ross Veitch, CEO & co-founder of Wego, described Cleartrip and Flyin as “product-driven companies with best-in-class OTA technology” and estabished brands with strong positions across the Middle East.
“This acquisition will significantly increase our scale and capabilities and will strengthen our ability to partner and collaborate across our region. We are also excited to begin a multi-faceted partnership with Flipkart that will involve us sharing a brand across regions and co-operating on technology.”
He added that the Middle East is set to be one of the “most exciting growth stories of the next decade” with the travel and technology sectors as the main players.
Stuart Crighton, co-founder and head of Cleartrip’s International Business, concurred: “The region is well placed to be the engine of growth for travel both as a destination and as a highly mobile, digital-savvy demographic looking for choice and value. By joining forces with Wego, we are able to offer everything from search to service and to contribute meaningfully to that story.”
Meanwhile, Ravi Iyer, senior vice president and head – corporate development at Flipkart, said the company has been able to provide its customers with a wide range of travel experiences through Cleartrip. “Given our strategic priorities and focus on the Indian market, the acquisition of Cleartrip’s Middle East business by Wego provides continuity to its business, and we believe that they are the right partners to boost its next phase of growth.”
Both Wego and Cleartrip have their regional headquarters located in Dubai Internet City.
• All images credit: Wego
