How India’s second biggest online travel aggregator’s upgrade—from economy to business class—made it a lucrative acquisition target.
In a research report last July, Citi reckoned that Yatra could be a potential buyout target. Reason: The largest Indian online venture in corporate travel and the second largest in the consumer/leisure market would be a perfect launch pad for a global player looking to enter India.
Nine months down the line, the prophecy has turned out to be true. In mid-March, the Nasdaq-listed software firm Ebix offered to acquire Yatra Online reportedly for $336 million, or 2,345 crore—a premium of over 84 percent of what Yatra was trading in early March. In a media release a few days after the buyout offer, Yatra informed it had entered into a ‘mutual confidentiality agreement’ with Ebix to further consider the proposal.
For Dhruv Shringi, co-founder of India’s second-biggest online travel aggregator (OTA) by revenue, it’s been a long, eventful trip since he along with Manish Amin and Sabina Chopra incorporated Yatra in 2006. The launch was just a year after rival and India’s biggest OTA MakeMyTrip (MMT) started India operations. MMT was founded in 2000, with a focus on the United States.
Yatra had a smooth run to begin with. Actor Boman Irani became its first brand ambassador in 2007 with Salman Khan following suit five years later. However, it was towards the end of 2012 that the Gurugram-headquartered venture started facing strong headwinds.
It all started with the grounding of Kingfisher Airlines due to its bloated debt and mounting losses. The turmoil at the private airline coincided with a two-year period in which oil prices ballooned, air fares surged, and flight bookings dipped. The worst, though, was yet to come. Goibibo, owned by South African media conglomerate Naspers, became hyper-aggressive in offering hotel discounts in 2015, triggering a bleeding cash burn game among all major players who were trying to match the financial might of their deep-pocketed rival.
Denne historien er fra April 12, 2019-utgaven av Forbes India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 12, 2019-utgaven av Forbes India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
