Online Travel Agency Travelocity has acquired Indian online hotel aggregator TravelGuru, according to a company release. Travel news site TravelBizMonitor had reported the deal a couple of days ago. According to Roshan Mendis, Regional VP (Travelocity Asia Pacific), “Travelguru will continue to operate as a stand alone business and brand in India”.
The terms of the deal have not been disclosed, but keep in mind that TravelGuru had raised around $25 million in funding overall – with $10 million from Sequoia Capital in the first round, and $15 million from Battery Ventures and Sequoia Capital India in the second round. TravelGuru was also a Times Private Treaties company, which involves sale of stake in the company in exchange for advertising inventory.
Frankly, we wonder if the investors made any money on the investment:earlier this year, TravelGuru replaced its air ticketing business with meta aggregator Ixigo.com, to focus on its hotel booking business – B2C domestic hotels & holidays, B2C international holidays, corporate travel and retail. Much hotel network itself was by virtue of TravelGuru’s acquisition of B2B Hotel aggregator Desiya.com. Ixigo still powers TravelGuru’s flight seach, and we wonder if that will change post the Travelocity acquisition.
Readers will remember that TravelGuru was reported to have been acquired Expedia last year, but that deal was eventually denied by the company.