Online travel booking platform Cleartrip, owned by Flipkart, reported heavy spending on discounts and cashbacks in FY25, which far exceeded its revenue.
According to filings, the company spent ₹608 crore on discounts and promotions during the year, while it earned just ₹169 crore in net revenue. This shows how Cleartrip relied heavily on cashbacks and offers to attract users in India’s highly competitive online travel market.
Losses Continue Despite Growth
Although revenue rose compared to previous years, Cleartrip’s strategy of aggressive discounting has kept profitability out of reach. With travel demand rebounding post-pandemic, the company tried to capture market share by offering deep discounts on flight and hotel bookings.
Industry experts believe this approach helps build brand recall but raises concerns about sustainability, especially when rivals like MakeMyTrip and EaseMyTrip have already improved their bottom lines.
Backed By Flipkart Support
Since being acquired by Flipkart in 2021, Cleartrip has received strong financial backing, allowing it to continue customer acquisition strategies despite heavy losses. Analysts say Flipkart may see Cleartrip as a long-term bet to build a strong presence in the travel booking industry, similar to how Amazon and other e-commerce players use travel as a value-added service.
Summary Table:
| Particulars | Amount (FY25) |
|---|---|
| Net Revenue | ₹169 crore |
| Discounts & Cashbacks Spent | ₹608 crore |
| Parent Company | Flipkart (Walmart-owned) |
| Strategy | Aggressive discounts to attract users |
| Market Competition | MakeMyTrip, EaseMyTrip, Yatra, and Ixigo. entrackr |
