Online Travel Agent Cleartrip has sold an undisclosed minority stake for $40 million to Concur, a NASDAQ listed provider of integrated travel and expense management solutions. Also a part of the deal is a marketing alliance between the two companies. Concur provides travel and expense reporting services for business travellers, and plans to integrate Cleartrip-generated travel itineraries for Indian clients.
Cleartrip already offers “Cleartrip for business“, allowing companies to manage ticketing for their employees, manage employee ticketing permissions, view travel analytics and generate reports, create prepaid deposit accounts etc. There appears to be a fit here with Concur which, according to its profile, allows companies to ensure that corporate travel is booked within policy, reconciles expenses after travel is completed, and delivers electronic receipts – from airlines, hotels, and car rental companies – directly into expense reports. Note that earlier this year, Concur had acquired mobile application based trip management service TripIt for up to $120 million ($82 million up-front). In this context, keep in mind that Cleartrip also alows users to track their trips.
According to a Director’s Report filed by Cleartrip with India’s Registrar of Companies, Cleartrip earned a gross revenue of Rs. 54.97 crore (around $12.39 million) for the year ended March 31st 2010 (FY10), and a Profit after tax of Rs. 6.07 crore (around $1.37 million*). In comparison, it earned revenues of Rs. 33.51 crore ($7.55 million) in FY09, and a loss after tax of Rs. 24.63 crore (around $5.55 million).
For its fiscal year ending September 30th 2010, Concur reported total revenue of $292.9 million, and net income of $20.6 million. In its most recent quarter, ending December 31st 2010, Concur has reported revenues of $80.2 million, and its net income was $3.7 million.
After MakeMyTrip’s blockbuster IPO last year, the question on our minds has been – who is next? So, is this a pre-IPO funding raising for Cleartrip? A NASDAQ listed firm as a shareholder would help target that market. In the meantime, there is word that Sequoia Capital funded Via might also raise funds; Expedia recently formed a joint venture with Air Asia, which will operate Expedia’s business in India, and other Asian geographies; then there is Travelocity, which had acquired TravelGuru, and last year, had filed a data theft case against Cleartrip.
Corrigendum: the article had incorrectly stated that Rs. 33.51 crore in revenue has been reported by Cleartrip for FY10, instead of FY09. The post above has been corrected. Our apologies for the mistake. Thanks for pointing it out Rajesh.