India’s largest mobile commerce platform, Paytm is looking forward to buy a part of Yatra.com the travel agency. Sources of TOI said Paytm is planning to enter in travel business and is hence holding round of talks with the travel company.
Paytm, had started as an online portal for payment; it made a grand entry in travel marketplace last year and added on to the transaction rates of its original business. “Paytm’s investment might come via primary infusion. However, some secondary sale may also happen,” an unnamed source was quoted by The Economic Times as saying.
An investor in Yatra.com have confirmed that talks are going on with Paytm for a potential investment. Although the email sent to Yatra.com was never answered and Paytm founder too has refused to comment anything.
The development plan will help Yatra to keep in pace with rivals like MakeMyTrip who had raised around Rs 1,200 crore from China’s Ctrip in January; including other players like Cleartrip, GoIbibo and Expedia. Yatra is already using Paytm’s wallet services for offering various discounts and cashbacks.
Snapdeal too recently, added redBus and Cleartrip in its mobile application, so that consumers can easily book bus tickets, flights and hotel rooms.
“For Paytm, the major attraction is to enhance its network in travel business as older players have been cornering the market share in this space along with funding. Yatra has been looking for fresh funds which could now come via Paytm,” a source aware of the development told Times of India.