Travelocity Global, the US based online travel firm, has acquired Travelguru, one of India's largest online hotel distribution networks, for an undisclosed sum. Industry sources, who termed the deal as a distressed sale, pegged the acquisition size at between Rs 45 crore and Rs 50 crore. Travelocity Global said that the Travelguru will remain a separate entity with co-founder and CEO Ashwin Damera continuing to head its operations. Travelguru between its three offices in Mumbai, Delhi and Bangalore employs close to 150 people. Roshan Mendis, regional vice-president of Travelocity Asia Pacific, said the acquisition will complement the company's online business and help it access more than 4,000 hotels in India. Industry sources said that Travelguru has been in the red for quite sometime and Damera had been trying hard to find a buyer for over a year now, reaching out to the likes of expedia.com, makemytrip.com and Cox & Kings. Travelguru since its inception in 2005 has received two rounds of venture capital funding. It raised $25 million in 2006 -- $10 million from Sequoia Capital India, which the latter followed up with a $15 million co-investment with Battery Venture. In 2007, Travelguru acquired travel portal, desiya.com, reportedly for $25 million in 2007.
No comments:
Post a Comment