Travelguru Valued At $12 Million?

The Travelocity-Travelguru deal marks the first sign of consolidation in the heavily venture-backed online travel agent (OTA) space in India. Besides Travelguru, other major venture capital backed OTAs are Makemytrip, Yatra and Cleartrip. Though the valuation for the Travelocity's acquisition of Travelguru is not disclosed, VCCircle has learned from sources that the hotel aggregator could be valued between $10-12 million. An email sent to Ashwin Damera, CEO & Co-founder, Travelguru, to verify this information, did not elicit a response till this article was published. Avendus Capital has advised Travelguru on the deal.
Travelguru is believed to have recorded revenues of Rs 10 crore for fiscal year ending March, 2009. Travelguru has been looking for a buyer since last year. Last year, VCCircle had reported that Travelguru was in talks to sell out to Travelocity's rival Expedia. The talks didn't materialise into a transaction then.
The VC investors in Travelguru would have lost money on the deal. Venture capital firm's Sequoia Capital India and Battery Ventures committed $25 million in two rounds of funding to Travelguru. The total amount of funding that actually flowed into the company is not known. Though investors in Travelguru would have preferred a stock deal, Travelocity is believed to have insisted on an all-cash deal.
18/08/09 VCCircle

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Categories: Indian Aviation- In General Aug 2009