Merger and Acquisition

Yatra Acquires Globe Travels for INR 128 Cr to Bolster Corporate Travel Segment

• ByStartupStory     |    September 3, 2024

Yatra Online has entered into a definitive agreement to acquire a 100% stake in Globe All India Services Limited, commonly known as Globe Travels, for INR 128 Cr (approximately $15.25 Mn). This acquisition is poised to boost Yatra’s corporate travel offerings by integrating Globe’s extensive client base and expertise in managing corporate travel, Meetings, Incentives, Conferences, and Exhibitions (MICE).

With this acquisition, Yatra will add 360 new customers from Globe’s portfolio to its existing 850 corporate clients, further solidifying its position as India’s largest corporate travel services provider. Globe Travels, a Kolkata-based company, is known for its exceptional service record in the corporate travel domain and MICE management, making it a valuable addition to Yatra’s growing corporate travel division.

“Given that the majority of Globe Travel’s business is currently offline, this acquisition presents a strategic opportunity to integrate our Corporate Self Booking Platform into Globe Travel’s customer base, thereby enhancing synergies and driving further value creation,” Yatra stated in a regulatory filing. The company also noted that Globe’s corporate clients are expected to benefit from increased efficiencies and reduced costs through Yatra’s advanced digital platform.

Globe Travels boasts an impressive annual gross booking of $90 Mn with adjusted EBITDA margins of over 20%, making this acquisition not only a strategic fit but also financially accretive for Yatra. The integration of Yatra’s digital platform with Globe’s predominantly offline business presents opportunities for cross-selling, particularly in hotels and expense management solutions, tailored to meet the specific needs of corporate clients.

Commenting on the acquisition, Yatra’s cofounder and CEO Dhruv Shringi said, “Globe Travels’ expertise in corporate travel and MICE and outstanding service record complement Yatra’s existing offerings, allowing us to provide an even more comprehensive and tailored travel experience to our clients across India.”

This acquisition follows Yatra’s recent move to increase its stake in Adventure and Nature Network (ANN), a key player in the adventure tourism sector, to 99%. This is part of Yatra’s broader strategy to expand its customer base and service offerings. The company had previously acquired Air Travel Bureau (ATB), another corporate travel service provider, in 2017.

Founded in 2016 by Dhruv Shringi, Manish Amin, and Sabina Chopra, Yatra has established itself as a leading online travel aggregator in India, particularly in the corporate travel segment. Despite recent financial challenges, including a 32.5% decline in consolidated net profit to INR 4.04 Cr in Q1 FY25, Yatra continues to pursue growth opportunities through strategic acquisitions and expansions.

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