Gurgaon-based online travel startup, Yatra today announces the acquisition of 54 years old corporate travel service Air Travel Bureau for an undisclosed amount.
The acquisition is in line to strengthen Yatra’s presence for the corporate travel sector in India. “We believe that as a combined entity, we are now the largest corporate travel services platform in India by Gross Bookings,” Dhruv Shringi, co-founder and chief executive officer of Nasdaq listed Yatra said.
“This acquisition will allow us to deliver best-in-class experiences to an even wider set of travellers, through our web and mobile app platforms and enhance our reach to cross-sell our entire product suite, including hotels, to this customer base,” he added.
As part of the deal, the board of directors of both the companies has approved the transaction. However, the first part of the transaction will be likely to close by mid-August 2017 and the second closing is expected to occur in the second quarter of 2018.
The Air Travel Bureau (ATB) is a corporate travel service provider and was established in 1962. The company currently operates in New Delhi, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, and Pune. It claims to have a workforce of more than 700 employees and a client base consisting of 400 large and medium-sized businesses. With annual Gross Bookings of $2.4 Bn, ATB specializes in corporate travel management, MICE operations and leisure tourism.
Sunil Narain, Chairman and CEO of ATB said, “ATB has built a very strong presence over the last 30 years in the corporate travel space. We’re excited for ATB to join the Yatra family and for our teams to work together to further enhance the offerings we provide to our customers and partners by leveraging Yatra’s technology platform and large hotel network.”
On the other side, the 11-year-old company was Founded by Sabina Chopra, Manish Amin, and Dhruv Shringi. Yatra currently has tie-ups with over 65,000 hotels in India and nearly 500,000 hotels across the globe. The company is backed by IDG Ventures, Vertex Venture Management, Norwest Venture Partners, and other investors.
Online travel portal, Yatra has been battling in the past and has reported losses upwards of $94.99 Mn (during 2016-17). However, the acquisition of ATB is likely to increase the customers reach for Yatra in corporate travel. But, it is remaining to be seen how the acquisition will help.