EaseMyTrip, the online travel aggregator (OTA) known for its aggressive acquisition strategy, announced on Monday that its board has approved the acquisition of 51% stake each in three Indian travel companies. The traveltech player will acquire majority stakes in Guideline Travels Holidays based in Mumbai, TripShope Travel Technologies based in Jammu & Kashmir, and Dook Travels headquartered in New Delhi.
EaseMyTrip Funding Details and Growth Plans
The consideration for the proposed acquisition will be made by issuing equity shares of EaseMyTrip to the selling shareholders of the target companies on a preferential basis. However, the company did not disclose the financial size of the deals. The acquisitions are expected to further strengthen EaseMyTrip’s position as a major player in the travel and tourism industry.
EaseMyTrip’s board also approved raising up to INR 90 crore through preferential allotment of shares or other modes in one or more tranches. The company will utilize the funds to meet its funding requirements and support its growth objectives.
Expanding Footprint and Leveraging Resources
The acquisitions will not only fuel EaseMyTrip’s growth but also expand its presence across the country. Additionally, the company intends to leverage the talent, resources, and knowledge base of the newly-acquired travel companies. Despite the acquisitions, the three companies will continue to maintain their unique identities.
EaseMyTrip co-founder Nishant Pitti expressed enthusiasm about the partnerships, stating, “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.”
EaseMyTrip Continued Expansion and Positive Financial Performance
EaseMyTrip has been rapidly expanding its portfolio through various acquisitions. In January, the company acquired a 55% stake in the hotel booking marketplace cheQin, followed by a 75% stake in aviation asset financing and leasing firm Nutana Aviation Capital IFSC in December of the previous year. Furthermore, in 2021, it acquired Spree Hotels & Real Estate for INR 18.25 crore.
Besides its acquisition spree, EaseMyTrip has ventured into new domains to drive growth and scale. It recently received an in-principle approval from its board to enter the general insurance space and entered the offline retail sector with its ‘EaseMyTrip Franchise’ earlier this year.
Strong Financial Performance and Global Presence
EaseMyTrip’s financial numbers continue to show positive trends. In the fourth quarter (Q4) of the financial year 2022-23 (FY23), the company reported a net profit of INR 31.1 crore, representing a 33.1% increase from the year-ago quarter. Revenue from operations also nearly doubled year-on-year (YoY), reaching INR 116.6 crore in Q4 FY23.
Founded in 2008 by Prashant Pitti, Nishant Pitti, and Rikant Pitti, EaseMyTrip is a traveltech unicorn offering flight and rail ticket booking, hotel reservations, and holiday packages. With over 400 international and domestic airlines and 20 lakh hotels listed on its platform, the company has established a significant presence globally, with offices in countries like the Philippines, Singapore, Thailand, the UAE, the UK, the USA, and New Zealand.
