Mumbai, Feb 21 : Online travel marketplace Wego on Monday said it has signed a definitive agreement with online marketplace Flipkart to acquire its Cleartrip’s Middle East business from it. “Wego, the leading online travel marketplace in the MENA region, on Monday announced that it has signed a definitive agreement with the Flipkart Group, India’s homegrown e-commerce ecosystem, to acquire Cleartrip’s Middle East business,” a joint statement issued here said.
This transaction also includes the sale of Flyin.com and a technology co-operation agreement between Wego and Flipkart. The companies, however, did not disclose any financial details of the proposed acquisition. “The Boards of Directors of Wego and Flipkart have approved the transaction, which is expected to close in the second half of 2022, subject to customary closing conditions and regulatory approvals,” it said. In April last year, Flipkart had acquired 100 per cent stake in Cleartrip as a part of its diversification plans. “Cleartrip and Flyin are both product-driven companies with best-in-class OTA technology that have established strong brands and strong positions across the Middle East,” Wego CEO & Co-Founder Ross Veitch said. He further said the Middle East is set to become one of the most exciting growth stories of the next decade with the travel and technology sectors taking center stage and with the Wego group playing a very crucial role.
“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,” Veitch added. Commenting on the development, Flipkart Senior Vice President and Head Corporate Development Ravi Iyer said, “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.”
Cleartrip expanded organically into the Middle East region in 2010 and acquired Riyadh based Flyin.com in 2018, which played a similar role in kick-starting online travel in Saudi Arabia. Wego and Cleartrip both have their regional headquarters located in Dubai Internet City.
