Online travel companies attract renewed interest from investors

As airlines continue to report higher passenger numbers, online travel firms are seeing renewed interest from investors. At least three Indian online travel firms—IxiGO.com, Yatra.com, and Cleartrip.com—are in the process of securing investment through initial public offers (IPOs), private equity or venture capital funding.
The renewed interest in online travel firms, that went through a rough patch when a global economic slowdown hit the travel industry, is being driven largely by the successful listing of Indian online travel firm MakeMyTrip Ltd, that runs Makemytrip.com, on Nasdaq in August, and whose stock soared to three times its IPO price of $14 each.
“The entire profile of online travel firms has risen with Makemytrip’s listing and 20% passenger growth fuelled by overall economic growth,” said Dhruv Shringi, chief executive officer and co-founder of Yatra.com.
“We have been contacted by a few financial and strategic investors in the last few weeks for our growth capital needs,” said Aloke Bajpai, founder and chief executive officer of iXiGO.com, an online travel meta-search company that is looking to raise between $7 million (Rs.31.4 crore) and $10 million for new product development, brand building and expansion into new markets.
01/10/10 P.R. Sanjai & Shraddha Nair/Live Mint

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Categories: Indian Aviation- In General Oct 2010