India’s second largest OTA, Yatra.com has raised Rs 140 crore in its fifth round of funding.
The funding round was led by IDG Ventures, Vertex and existing backers Norwest Venture Partners among others.
The funding will be used to grow the hotels and holiday packages business, and develop mobile technology.
Institutional investors now hold 80% stake in the company. Yatra CEO, Dhruv Shringi, told a financial daily that investors have also committed Rs 140 crore in addition to the existing round for future acquisitions by Yatra. Yatra has said that it will spend anywhere between $1 Mn – $20 Mn to for future acquisitions(via).
Yatra is also planning an IPO in the next 36 months, most likely on a US exchange.
The current round of funding signals renewed investor interest in the space, as well as future consolidations.
Yatra has made four acquisitions till date,
The company had acquired Bangalore based Magic Rooms Solutions and Travel Services International before that.
Yatra’s revenue for FY14 was Rs 301.4 Cr, with 30% of its topline coming from the hotels and packages segment. The company is looking to increase the number of hotels that it has tied up with and double inventory.
OTAs have also been facing the brunt of a sluggish economy for some time now. An SC ruling has in 2013 had banned airlines from taking transaction fee on airline tickets, hugely eroding their margins.
Since then attention has shifted attention to the hotels & packages segment owing to this. MakeMyTrip, one of Yatra’s biggest competitors which had 85% of revenue coming from the ticketing segment, had only 68% coming from it in 2013.