Paytm in talks to acquire online travel company Via.com
BENGALURU: The Alibaba-backed Paytm, which has been scaling up its online travel business over the last one year, is in active discussions to acquire Via.com. Paytm's discussions to acquire the online travel booking site is being negotiated at a valuation of about $50-75 million, sources aware of the matter told TOI.
After having raised fresh capital, Paytm has been doling out cashbacks to corner market share from rivals like MakeMyTrip-GoIbibo combine and Yatra.com in the online travel space. It has been diversifying into new businesses by acquiring and picking up stakes in ventures such as events ticketing and booking to bolster its revenues and go beyond being a mobile wallet platform only.
Paytm's interest in Via.com comes at a time when it has been able to get a toehold in the highly competitive online travel business. The company is also trying to shore up its hotel bookings business, which offers better margins compared to travel where it is fighting not only with online travel sites but specialised startups like OYO, Treebo Hotels and FabHotels.
Sources close to the matter told TOI that Paytm has held talks with Cleartrip as well but those talks fell through. "Paytm has been talking to multiple players but the discussions with Via.com is in an advanced stage. Unlike others, Via has a strong business that comes from offline users, especially in non-metro cities which Paytm is keen to tap," said a person aware of the development.
An email sent by TOI to Paytm's founder Vijay Shekhar Sharma did not elicit a response, while Via.com's CBO Paroma Chatterjee declined to comment on the story.
Via.com, which had raised funds from Sequoia Capital and Kalaari Capital (then Indo-US Venture), has largely stayed away from participating in a discounting war with established peers. The Bengaluru-based company has focused on its agents-led business in non-metro areas, which is its primary source of revenue. For Paytm though, this would not be the first time it has shown an interest in inorganic expansion for its travel business.
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