Yatra Online has entered into a strategic tie up by acquiring a stake in TSI - Travel Services International Pvt Ltd.

This strategic tie-up would strengthen the foray of Yatra in the B2B consolidation space, while TSI intends to leverage Yatra’s complementary strengths by adding new locations, markets and travel products to its existing portfolio.

Mr Praveen Chugh the Promoter of TSI would continue to serve as the MD and CEO of the strategic tie-up.

Singhi Advisors were the sole advisors on the deal.

Transaction Reference: Dealcurry

Founded in 1999, TSI is an IATA approved wholesale ticket consolidators with a gross billing of Rs.430 Cr. It presently operates through five locations and has identified new strategic locations for its expansion. It recently developed its online B2B travel portal, www tsi.travel.

Backed by Norwest Venture Partners, Reliance Venture Asset Management and Television 18 Group (TV18), Yatra Online Pvt Ltd is an online travel company that runs the portal Yatra.com and enjoys around 30% market share in online travel reservations space.

The industry led by Online Travel Agents (OTAs) has witnessed resurgence in investor interest recently on account of the successful listing of Makemytrip Ltd that runs Makemytrip.com, on Nasdaq in August, and whose stock soared to three times its IPO price of $14 each.

According to data from online travel market research firm PhoCusWright, the Indian online travel market will be $6 billion by the end of 2010.

Since 2006, many online travel portals such as Makemytrip, Cleartrip, Yatra and Travelguru have raised large rounds of funding from various private equity and venture capital funds.

IxiGO.com, Yatra.com, and Cleartrip.com - are in the process of securing further investment through IPO, PE or VC funding.

The most successful travel companies have reached their position in part through acquisition therefore recognizing that size matters in the travel agency business, the large companies with strong management and a highly controlled financial wherewithal are likely to acquire smaller companies and integrate them.

This year MakeMyTrip.com acquired online bus ticketing company Ticketvala.com from Mumbai-based Travis Internet.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
19/10/10	TSI - Yatra Online	M&A	Yatra Online Private Limited	-

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
17/05/12	Private Equity	Looking For	Cox and Kings Limited	140.00	Planned
14/05/12	M&A	Expolanka Holdings Plc	Akquasun Holidays India Private Limited	0.93	Completed
03/05/12	M&A	MakeMyTrip India Private Limited	D Pauls Travel and Tours Limited	-	Rumor
23/04/12	M&A	MIH Group	Tek Travels Private Limited	-	Completed

 

  Profiles

Company
Name	Promoters	Office	Competitor	Website
Yatra Online Private Limited	Dhruv Shringi Manish Amin Sabina Chopra	93-B Mittal Court, Nariman Point Mumbai – 400021 Maharashtra	MakeMyTrip India Private Limited Travis Internet Private Limited	www.yatra.com
TSI-Travel Services International Private Limited	Praveen Chugh	H-106 Sarita Vihar, New Delhi - 110044, Delhi		www.tsi.co.in

  Advisor

Singhi Advisors

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Readers' Recommendations

1	March 14, 2011 04:29 PM	Qur company is manpower resources for other counteries so i want a corporate tie-up regarding to tickets and visa peocessing for Afghanisatan ,Dubai, Iraq ,middle east. - Posted by Ms. Naveen Nain Recommended by 0 Readers
2	March 14, 2011 04:28 PM	Qur company is manpower resources for other counteries so i want a corporate tie-up regarding to tickets and visa peocessing for Afghanisatan ,Dubai, Iraq ,middle east. - Posted by Ms. Naveen Nain Recommended by 0 Readers