Yatra online acquires Globe Travels for ₹128 crore, expands corporate clientele

Online travel agency Yatra Online Ltd announced on Monday its acquisition of Globe All India Services Ltd (Globe Travels) from Ramkrishna Forgings Ltd for ₹128 crore. This strategic move is set to enhance Yatra's corporate business and drive its inorganic growth. The acquisition, expected to be finalized this quarter, will significantly boost Yatra’s capabilities in reservation and booking services for both corporate and leisure travel, as well as tour planning and car rentals.

With this acquisition, Yatra’s corporate customer base will expand by 40%, adding 360 new companies to its existing roster of about 850 corporate clients. “This will help gain access to new geographies, increase market penetration, and add new capabilities to our existing line of business, thereby accelerating the marketing of products and services and maximizing revenue opportunities,” the company stated.

Dhruv Shringi, co-founder and CEO of Yatra, emphasized the strategic importance of this acquisition. “This acquisition aligns with our strategy to deepen our presence in key verticals and markets while further strengthening our corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) capabilities. Globe Travels’ expertise complements our existing offerings, allowing us to provide an even more comprehensive and tailored travel experience to our clients across India,” Shringi said.

Globe Travels, originally acquired by Ramkrishna Forgings in April 2013, contributed ₹250 crore (6.3%) to Ramkrishna Forgings' consolidated turnover in FY24, with a net revenue of ₹18.82 crore. The travel agency has seen substantial growth, with its turnover increasing by 51% from ₹161 crore in FY22 to ₹214 crore in FY23.

The proceeds from the sale of Globe Travels will be utilized by Ramkrishna Forgings to enter the aluminium forgings segment, particularly targeting the electric vehicle (EV) market. Naresh Jalan, managing director of Ramkrishna Forgings, stated, “As part of our strategic product rationalization initiative, we have decided to focus on our core segments, particularly in forged, machined, and fabricated products for diverse sectors such as automotive, railways, oil and gas, and power, where the company sees great potential for growth and expansion.”

Despite Yatra Online reporting a consolidated revenue of ₹100.8 crore from operations for Q1FY25, reflecting a 9% decline from ₹110.1 crore in the same quarter of FY24, the company remains optimistic. Net profit fell to ₹4.3 crore from ₹7.3 crore in the corresponding quarter last year, primarily due to reduced volumes in the consumer business as the company adjusted discounts amid intensifying market competition.

Yatra's standalone revenue from operations for the quarter ended 30 June dropped to ₹69.7 crore from ₹78.6 crore a year ago. However, profit doubled to ₹2.1 crore from ₹1.04 crore in the corresponding period of the previous year.