Reliance Capital is set to sell its 16 per cent stake in online travel portal, Yatra.com 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 Yatra.com 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.
Yatra.com 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, Yatra.com stood at USD 50 million operating income annually.
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.