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Reliance Capital to Sell 16 Percent Stake in for INR 500 Cr


Reliance Capital is set to sell its 16 per cent stake in online travel portal, for an estimated amount of INR 500 crore in order to encash its minority investment. The company had acquired this stake for INR 40 crore in 2006.

As per an ET report, the deal is expected to be closed in 4-6 weeks and puts the total valuation of the at around INR 3,000 crore. Other investors in travel portal include Norwest Venture Partners (30 per cent), TV-18 group (10 per cent), Intel Cap (7 per cent), Valliant Capital (10 per cent) and 6 percent owned by its management team. is directly competing with MakeMyTrip which is having a market value of USD 1.2 billion with an operating income of USD 116 million for the year. While, stood at USD 50 million operating income annually.

Also Read: SAIF Partners Sells 2.41 percent Stake in Just Dial For INR 254 Cr 

Last month, SAIF Partners had sold off its 2.41 percent stake in Mumbai-based local search provider, JustDial for a total amount of INR 254 crore.

It is interesting how investors are doing away with their holding in non-retail e-commerce companies, which are supposedly profitable as against online retail. Looks like they feel they have already earned as much as they could.

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One comment

  1. 1

    I wonder how much margins these guys have in online booking industry. Consider the following:

    1. The rates on actual airline site and these travel portals is almost the same. In fact in hotel booking it is lesser.

    2. They give further discounts on those bookings and run seasonal offers too. Such as yatra has a page:

    3. They give discounts through special codes such as those available on

    4. They give affiliates and advertisers commission per sale.

    No wonder most big names are into funding these portals. After all its all about money.

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