Tuesday, 19 September 2017

Paytm to acquire Travel portal Via.com

Flush with funds from Japan Softbank, digital wallet and e-commerce company Paytm is eyeing another acquisition. The payments firm has held preliminary talks to acquire online travel company via.com. Paytm, which is run by One97 Communications Ltd, is looking to invest close to $80 million to acquire the Bengaluru-based travel portal.
In March this year, the Alibaba-backed Paytm tied up with US-based online travel portal Priceline Group’s Booking.com, to expand its travel business. The company then said it will invest Rs 300 crore to further grow this business and that it is also looking to ramp up its Bengaluru-based travel marketplace team to over 250 people in the next two quarters. Paytm’s travel marketplace enables users to book hotels, flights, trains and bus tickets on a fast, secure and convenient platform. In January 2017, the Noida-headquartered company claimed to have crossed $500 million in annualized gross merchandise value.

Via.com, owned and operated by Flightraja Travels Pvt Ltd, was founded in 2007 as an offline business-to-business travel site. It currently functions as a travel deals aggregator and ticket booking site. Its inventory includes ticketing in flights, hotels, holiday packages as well as car and bus services. The firm had raised $5 million from Indo US Venture Partners (now Kalaari Capital) in 2007 and followed it up with a $10 million round from Sequoia Capital in December 2009.

Following its $200 million funding from Alibaba and SAIF Partners into to its e-commerce arm in March this year and $1.4 billion from SoftBank in May this year, Paytm has been on a multi-pronged expansion drive. It has made a number of investments and acquisitions and effected key appointments, internal movements, and new business strategies. Earlier this month, the company was in talks to acquire deal discovery app Little and online deals startup Nearbuy to strengthen its hyperlocal play.

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