There’s some confusion. Or shall we say competition? News reported first by VC Circle this morning said that Expedia has bought a majority stake in Mumbai-based travel services portal TravelGuru. The report puts the size of the deal at $17 million and additionally, Expedia reserves the right to up its stake in TravelGuru in future. Simple enough so far. But just I am about to compose my thoughts on how the ongoing consolidation in the online travel space has moved to the next level, comes this denial of sorts on the deal from TravelGuru CEO Ashwin Damera at Medianama.
Anyway, I did some asking around within the venture capital community and I’m inclined to believe both reports are right and wrong. Some deal seems to have been initiated but the terms, it appears, are yet to be finalized. TravelGuru is the smallest in terms of revenues among leading online travel services firms — the unconfirmed estimate is $2 million. It trails Makemytrip, Yatra and Cleartrip, necessarily in that order. For a larger perspective on the online travel business and its current state of affairs, read this Outlook Business report.
The big news is that TravelGuru has been sold to Expedia. That has not been denied in any communication from the company to VC Circle post-publication of the story.
The only dispute is the valuation and deal size, which we do not claim are the exact numbers but are just indicative. They are the sort of numbers which may or may not be off the mark unless you pick it up from SEC/CLB filings. For now, let’s savour the news that TG will be Expedia owned, if it’s not already.
Hmm…I think the question you really need to ask is – would Sahad have done the story had he written in the print media? I think he would. I don’t think Sahad would have done the story unless he was confident about it, irrespective of whether it is in print or online.
That said, what Ashwin Damera told MN is that the deal hasn’t been signed yet. Doesn’t mean it isn’t in the process; just that it hasn’t been closed.