Cleartrip clocks gross booking value of $1.5 bn and net revenue of $100 mn globally

Cleartrip's Head of Corporate Strategy, Aditya Agarwal shared that more than half the revenues for Cleartrip come from outside India

e4m by Misbaah Mansuri
Updated: Dec 9, 2019 9:30 AM
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Online travel portal-Cleartrip has clocked gross booking value of $1.5 billion and net revenue of $100 million globally, Aditya Agarwal, Head Corporate Strategy, Cleartrip shared with exchange4media. “Cleartrip is operating at close to breakeven EBITDA for 5 successive years and net revenue CAGR over last 5 years of 29%,” Agarwal said. He added that present in 8 countries, more than half the revenues come from outside India.

Agarwal revealed that the company’s growth strategy is a judicious mix of organic and inorganic expansion. “Every market entry decision is analysed through a rigorous build vs buy lens and both approaches have been successful for us. We have built over 70% market share in the UAE entirely organically. Our acquisition of Flyin, the largest player in Saudi Arabia, was a landmark transaction in the Middle East, and we have completed a very successful integration exercise in less than 18 months, extracting revenue as well as cost synergies,” he added.

He further asserted that unlike most consumer Internet companies, the brand has been highly disciplined and efficient in using capital and have prioritised both growth and unit economics. “This has allowed us to build a far more sustainable business model where we compete not on capital or discounting, but on our product and customer experience. This has, in turn, led to more long term and loyal customer relationships,” he said.

Agarwal remarked, “We have leveraged our 13 years of experience in India, deep product and technological expertise, and understanding of a highly diverse and discerning consumer base, and applied those learnings to successfully establish market-leading businesses in other emerging markets. Today more than half our revenues come from 8 international markets, of which we are the #1 player in 4. We take immense pride in being an India-born company that has thrived even outside India. “

In terms of its India operations, the company reported a net loss of Rs 31 lakhs for the financial year 2018-19 and just a 2% jump in revenue since the last financial year. The online travel and leisure brand recently launched ‘Cleartrip for Work’, a travel product for individual travellers. Through ‘Cleartrip for Work’, travellers with a GST number can access unlimited corporate fares on flights with benefits that include unlimited cashback, complimentary in-flight meals, zero trip modification charges, reduced cancellation fee, and reduced seat selection fee through a simple sign-in process. Travellers can avail of benefits across flights and hotels for domestic and international travel, the company claims.

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