EaseMyTrip will acquire 51% stake each in Guideline Travels Holidays, TripShope Travel Technologies and Dook Travels
The consideration for the proposed acquisition will be paid by EaseMyTrip by issuance of its equity shares to the selling shareholders of the target companies on a preferential basis
EaseMyTrip also said that its board has approved raising up to INR 90 Cr through preferential allotment of shares or any other mode in one or more tranches.
Online travel aggregator (OTA) EaseMyTrip, which is on an acquisition spree, on Monday (July 31) said it has received the approval of its board to acquire 51% stake each in three Indian travel companies.
The listed traveltech player will pick up majority stakes in Mumbai-based Guideline Travels Holidays, Jammu & Kashmir-based TripShope Travel Technologies and New Delhi-headquartered Dook Travels.
The consideration for the proposed acquisition will be paid by EaseMyTrip by way of issuance of its equity shares to the selling shareholders of the respective target companies on a preferential basis, the company said in a statement. However, it didn’t disclose the size of the deal.
EaseMyTrip said the acquisitions will further solidify its position as a major player in the travel and tourism industry.
Besides, the company also said that its board has approved raising up to INR 90 Cr through preferential allotment of shares or any other mode in one or more tranches.
“… The proceeds from the aforesaid proposed fund raising are intended to be utilised for meeting funding requirements and growth objectives of the company and its businesses,” EaseMyTrip said in an exchange filing.
Meanwhile, the acquisitions will enable EaseMyTrip to further fuel its growth and expand its footprint across the country. In addition, the acquisitions will also enable the company to leverage talent, resources, and knowledge base of the newly-acquired companies.
As per EaseMyTrip, the three companies will continue to maintain their respective ‘unique identities.’
“These three companies have a strong track record and a wealth of experience in their respective areas. Together, with these remarkable travel companies, we extend and embrace a diverse spectrum of exceptional services catering to larger markets,” said EaseMyTrip cofounder Nishant Pitti.
EaseMyTrip Eyes Growth, Scale
Leveraging its post-pandemic growth, the online travel aggregator has been adding startups in its kitty left, right and centre. In January this year, EaseMyTrip acquired a 55% stake in hotel booking marketplace cheQin.
In December last year, it also picked a 75% stake in aviation asset financing and leasing firm Nutana Aviation Capital IFSC. In 2021, it also acquired Spree Hotels & Real Estate for INR 18.25 Cr.
Besides, the company has also been venturing into a host of new domains as it looks to chart out the future course for growth and scale. In May, it bagged an in-principle nod from its board to venture into the general insurance space. The Delhi NCR-based traveltech unicorn also entered into offline retail space with its ‘EaseMyTrip Franchise’ early this year.
Meanwhile, the financial numbers of the company continue to improve. The company reported a net profit of INR 31.1 Cr in the fourth quarter (Q4) of the financial year 2022-23 (FY23), up 33.1% from INR 23.3 Cr in the year-ago quarter. Revenue from operations also nearly doubled (91.5%) year-on-year (YoY) to INR 116.6 Cr in Q4 FY23.
Founded in 2008 by Prashant Pitti, Nishant Pitti and Rikant Pitti, EaseMyTrip is a traveltech unicorn that allows users to book flight and rail tickets, hotels and holiday packages. It claims to have more than 400 international and domestic airlines and 20 lakh hotels listed on its platform.
The company claims to have international offices in countries such as Philippines, Singapore, Thailand, the UAE, the UK, the USA and New Zealand.