EaseMyTrip to buy travel marketplace Traviate in first ever acquisition
The board of directors of the listed company has considered and approved its plan to enter into a non-binding agreement offer with Traviate Online Pvt. Ltd. for acquisition, according to a filing on Thursday. The deal will add a new revenue stream, “fast-track” EaseMyTrip’s expansion into the B2B hotel and holiday space and result in higher cost efficiency.
The deal is likely to be completed in three months, “subject to finalisation of definitive agreements, customary closing conditions and other necessary approvals”.
Founded in 2016, Traviate is India’s first B2B travel marketplace. It lists more than 1.2 million hotels and has enabled over two lakh transactions. Seventy percent of the company’s hotel inventory is sold by the B2B channel, which includes travel agents, hotels, tour operators, destination management companies, and other players in the travel ecosystem to connect and transact among each other.
Rikant Pittie, cofounder of EaseMyTrip, said there is a synergy between the two companies in that it leverages “cutting-edge” technology to build a lean and efficient infrastructure. “We are thrilled about this development and look forward to having Traviate as our perfect partner to strengthen our portfolio in the B2B hotel and holiday space,” he said.
On Thursday, EaseMyTrip shares rose 4.99% to Rs 492.00 apiece on the BSE while the benchmark Sensex ended the day 1.89% lower at 59,984.70 points.