In an investor presentation, Yatra said that the acquisition of Globe Travels is expected to be “immediately accretive” to its financials
With minimal overlap in customer base, the acquisition will also open up cross-selling opportunities across hotels, expense management and travel solutions, it said
Last week, the company said that it will acquire corporate travel services provider Globe Travel for INR 128 Cr in an all-cash deal
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Online travel aggregator (OTA) Yatra has said that the acquisition of Globe Travels will add 350 new corporate clients to its existing customer base, taking the total tally of corporate customers to 1,200.
Last week, the company said that it will acquire corporate travel services provider Globe Travel for INR 128 Cr in an all-cash deal.
In an investor presentation on Friday (September 6), Yatra said that the acquisition is expected to be “immediately accretive” to its financials. Globe Travels will add an annual gross merchandise value (GMV) of INR 783 Cr, with business-to-business (B2B) total GMV now exceeding 50% of total GMV of Yatra.
With minimal overlap in customer base, the acquisition will also open up cross-selling opportunities across hotels, expense management and travel solutions, it added.
Founded in 1981, Globe Travels is one of India’s oldest hospitality management companies, which also operates in sectors such as corporate travel, car rental and cargo freight forwarding. However, a majority of its business is currently offline.
As part of the agreement, Yatra will integrate its corporate self booking platform with Globe Travels, driving efficiency and reducing costs for the latter’s clients.
Further, the acquisition will also strengthen Yatra’s capabilities in Meetings, Incentives, Conferences, and Exhibitions (MICE) with the combined entity emerging as one of the leading players in MICE by volumes, it said.
The acquisition is part of Yatra’s strategy to grow its market share and shore up revenue through strategic acquisitions. In its DRHP last year, Yatra said it would use the proceeds from the IPO for strategic investments, acquisitions, and to fuel organic and inorganic growth initiatives
In June this year, the company picked up an additional 45% stake in Adventure and Nature Network (ANN), a prominent player in the adventure tourism sector.
Prior to that, in 2017, Yatra acquired corporate travel service provider Air Travel Bureau (ATB) for an undisclosed amount.
Founded in 2016 by Dhruv Shringi, Manish Amin and Sabina Chopra, Yatra is an OTA and India’s largest corporate travel services provider. It competes with the likes of ixigo, EaseMyTrip, MakeMyTrip, Cleartip, among others.
According to Inc42 data, the Delhi NCR-based startup has bagged a total funding of $151.56 Mn till date.
Yatra reported a 32.5% decline in its consolidated net profit at INR 4.04 Cr in Q1 FY25 from INR 5.99 Cr in the year-ago quarter. Revenue stood at INR 100.80 Cr in Q1 FY25, down 8.5% year-on-year (YoY) and 6.3% quarter-on-quarter (QoQ).
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