Traveltech startups like Oyo, ixigo, EaseMyTrip are driving growth through a surge in acquisitions, targeting market expansion, customer reach and enhanced capabilities, given the post-pandemic travel boom.Recent notable deals include Oyo’s acquisition of G6 Hospitality, the parent of Motel 6 and Studio 6, to boost its international footprint. Similarly, MakeMyTrip acquired Happay, ixigo took over Zoop India, and Yatra snapped up Globe India.
According to Tracxn, the median acquisition price in the sector rose sharply to $15.3 million this year, up from $1 million in 2022. “Travel is inherently diverse, spanning across niches like corporate and holiday planning. It’s also geographically fragmented, leading to many small but profitable players,” said Rajul Garg of Leo Capital, a VC investor in Travclan, a B2B travel tech startup.
EaseMyTrip, which has maintained profitability since inception, is aggressively pursuing acquisitions to diversify. Recent investments include stakes in Rollins International and Pflege Home Healthcare, alongside acquisitions of travel firms like Tripshope Travel Technologies. “We’re targeting companies that align with our growth vision and could launch an IPO within 4-5 years,” said Nishant Pitti, CEO, EaseMyTrip.
The strategy allows startups to scale rapidly and innovate without building from scratch. “Acquiring local players brings immediate access to customers, infrastructure and market expertise,” said Milan Sharma, MD of 35North Ventures.
For instance, ixigo’s acquisition of Abhibus in 2021 bolstered its footprint in smaller cities, contributing to a double-digit growth in its bus ticketing revenue, which reached `39.6 crore in Q1FY25. “There’s an untapped potential in bus ticketing, with only 20% of tickets sold online,” said Aloke Bajpai, CEO, ixigo.
Experts see continued consolidation in 2025, with a push toward creating comprehensive platforms covering flights, hotels, experiences and transport. Additionally, tighter funding conditions may prompt smaller startups to seek acquisitions as an exit route. “We’ll likely see more deals in AI, sustainable trave, and regional markets,” Sharma added.
Venture capitalists view this trend favourably, with acquisitions offering liquidity and strategic exits.
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