Update: Suvir Sujan of Nexus Venture Partners has informed MediaNama, that NVP has indeed made an exit from MagicRooms.
You’re reading it here first: Yatra Online, one of India’s leading online travel agents, has acquired b2b hotel aggregation and reservation company, MagicRooms, through its hotels subsidiary Intech Hotel Solutions. Yatra CEO, Dhruv Shringi, confirmed the same with MediaNama, adding that the MagicRooms team has already joined forces with Intech, and will now be a part of the company.
Last year, MagicRooms had raised Rs 7 crore from Nexus Venture Partners, in order to build infrastructure and increase marketing efforts. It had also signed up MakeMyTrip, another online travel agent (OTAs), as its customer. Nexus Venture Partners declined to comment on what happened to their stake in the company, and we’re awaiting a response from Shringi on this.
MagicRooms was founded by FlightRaja (Now Via), co-founder Niranjan Gupta in 2009, and provided travel agents a hotel global distribution system, offering access to a live inventory of around 3,000 hotels (according to the company’s website), across India and commissions on bookings. Yatra had invested in Intech for real time inventory management and sales, specially for small and mid-sized accommodation providers. So, this deal seems to be in line with the same strategy.
We have witnessed vanilla hotel aggregation companies being acquired by online travel agencies in the past. Hotel aggregator Desiya, was earlier acquired by another hotel aggregator TravelGuru, which was eventually acquired by online travel agency, Travelocity.
We will update the story if we get more details.