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IDGVI News: Portfolio News

Post merger, Yatra starts Nasdaq trading

By Biswarup Gooptu | ET Bureau, December 21, 2016

In a statement released on Monday, Yatra said TRTL will become a partially-owned subsidiary of Yatra, with the former's leadership team heading the merged entity.

NEW DELHI: Yatra Online, which owns and operates travel portal Yatra.com, has completed its reverse merger and began trading on Nasdaq late on Tuesday. Yatra will trade on the technology stock-dominated bourse under the symbol YTRA.

The trading takes place a little over five months after it entered into a reverse merger deal with Nasdaq-listed special purpose acquisition firm Terrapin 3 Acquisition (TRTL), and which was reported by which was reported by ET in July l.

The deal, which had an enterprise value of $218 million, eased the way for a backdoor public market listing. Yatra chief executive Dhruv Shringi is expected to ring the Nasdaq closing bell on Tuesday.The company's stock had been priced at $10 before opening trade. The stock opened at $10 and remained unchanged at the time of going to press.

In a statement released on Monday, Yatra said TRTL will become a partially-owned subsidiary of Yatra, with the former's leadership team heading the merged entity. The company has also raised $92.5 million of primary capital from a group of global investors. "There are two or three key areas where we want to deploy the proceeds," Shringi told ET.

"First and foremost, we are seeing growth in India on the aviation side pretty much happen at a very broad level. It's no longer restricted to the 15 metro cities, but is also now in the tier-2 and tier-3 towns. Every data seems to point to the fact that this will only grow."

Shringi, however, did not disclose the names of the investors that had invested in Yatra, except to say that these were typical public market investors, including institutional funds. The company will deploy some of the proceeds into the country’s tier-2 and tier-3 towns, as it looks to take advantage of the government’s push towards regional aviation and the growth in air travel demand.

“On the mobile technology front, these customers who are going to come online will come on the back of mobile devices… Thirdly, in addition to flights, these guys will also start consuming hotel products, which are primarily budget in nature,” Shringi said, adding that Yatra had about 61,000 listed properties on its platform.

The company is also gearing up to roll out an alternative accommodation platform, including home stays, according to Shringi. This will see the company once again, directly compete with MakeMyTrip, which also entered the space earlier this year with its home stay offering Rightstay.

Yatra’s home stay platform has already been launched in beta mode and will continue as such till January end. The company is also banking on its partnership with Reliance, an existing stakeholder in the company, which will see the Yatra app pre-installed on the company’s Lyf-branded 4G handsets. As part of the deal, Reliance was issued a small equity stake, as reported by VCCircle.

“As part of this arrangement, 35 million Reliance Lyfe devices will have the Yatra app pre-installed on it. This will allow us to penetrate very deeply into tier-2 ad tier-3 markets in India. It also allows us to do this in a very cost-efficient manner,” Shringi said.

Yatra customers booked more than 2.8 million air travel reservations and hotel stays with a total transaction value of more than $900 million during the year ended March, an increase of 25% from the previous year.

Shringi, however, did not disclose the names of the investors that had invested in Yatra, except to say that these were typical public market investors, including institutional funds. The company will deploy some of the proceeds into the country's tier-2 and tier-3 towns, as it looks to take advantage of the government's push towards regional aviation and the growth in air travel demand.

"On the mobile technology front, these customers who are going to come online will come on the back of mobile devices… Thirdly, in addition to flights, these guys will also start consuming hotel products, which are primarily budget in nature," Shringi said, adding that Yatra had about 61,000 listed properties on its platform.

The company is also gearing up to roll out an alternative accommodation platform, including home stays, according to Shringi. This will see the company once again, directly compete with MakeMyTrip, which also entered the space earlier this year with its home stay offering Rightstay.

Yatra's home stay platform has already been launched in beta mode and will continue as such till January end. The company is also banking on its partnership with Reliance, an existing stakeholder in the company, which will see the Yatra app pre-installed on the company's Lyf-branded 4G handsets. As part of the deal, Reliance was issued a small equity stake, as reported by VCCircle.

"As part of this arrangement, 35 million Reliance Lyfe devices will have the Yatra app pre-installed on it. This will allow us to penetrate very deeply into tier-2 ad tier-3 markets in India. It also allows us to do this in a very cost-efficient manner," Shringi said.

Yatra customers booked more than 2.8 million air travel reservations and hotel stays with a total transaction value of more than $900 million during the year ended March, an increase of 25% from the previous year.