US-based online travel firm Travelocity Global has acquired India's online hotel distribution network Travelguru, said a company release. The details of the transaction were not disclosed. Venture capital firms Sequoia Capital India and Battery Ventures have committed $25 million in two rounds of funding to Travelguru. Travelocity started its India business in 2007 and already has an online travel agency Travelocity India. Both Travelguru and Travelocity will continue to operate as standalone properties after the transaction.
Travelguru was last year in talks with Expedia for a deal which didn't materialise. Travelguru has a portfolio of more than 4,000 hotels in India which complements Travelocity's existing distribution of branded, chain and luxury properties in India. Travelocity Global is one of the world’s largest online travel companies, with its Travelocity, lastminute.com and ZUJI businesses worldwide generating more than $10 billion in gross travel sales annually.
Travelguru, a Harvard Business Plan contest winner, was launched in 2006 with the backing of Sequoia Capital India. The company initially focused on air ticketing, however, soon after changed its focus to hotels aggregation. In December 2007, it acquired a B2B hotels aggregator Desiya.com in a stock deal rumoured to be valued at $25 million.
"Travelocity India will continue its full service online travel agent (OTA) focus, which includes international and domestic air, hotel and package travel. We will look to leverage the benefits of increased access to hotel content across our sites and our distribution partners, and to leverage synergies in product, technology, partnerships and innovation across both businesses over time," said Roshan Mendis, regional vice president of Travelocity Asia Pacific.
"Travelocity is a good fit for Travelguru, and I am excited about our future as part of Travelocity Global. The mutual vision we have for Travelguru is to continue the successful hotel business we have today, and to grow and evolve by working hand in hand with Travelocity's local and global team," said Ashwin Damera, Chief Executive Officer, Travelguru.
August 22, 2009
The loss on investment for VC was known that it would happen and the other VC's who have over invested in other portals are now on a hot seat. How are they going to explain to their investors at the crazy valuations they put money into.