Travel Aggregator Cleartrip Records Rising Expenses, Net Loss Over INR 800 Cr In FY24

Manvendra HadaDecember 1, 2024

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Three points you will get to know in this article:

Cleartrip reports a loss of over Rs 800 Cr FY24, despite 98% year-on-year sales increase.
Net revenue from operations increased to Rs 97 crore in FY24 from Rs 49 crore in FY23.
Its overall cost rose by 26.7% to Rs 988 crore in FY24 from Rs 780 crore in FY23.

Cleartrip Releases Comprehensive FY24 Data, Charts Massive Losses, Revenue Doubles

While all online travel agents (OTAs), including MakeMyTrip, Ixigo, Yatra, and EaseMyTrip, have been profitable in recent quarters, Cleartrip has reported a loss of over Rs 800 crore in the fiscal year ended March 2024, despite 98% year-on-year sales increase.

Cleartrip was acquired by Flipkart in April 2021 for $40 million in a distressed sale. Cleartrip’s net revenue from operations increased by 98% to Rs 97 crore in FY24 from Rs 49 crore in FY23, according to its annual financial statements filed with the Registrar of Companies.

Cleartrip Net Operating Revenue, Net Income

Cleartrip’s gross operations generated Rs 369 crore in service charges from consumers and Rs 240 crore in commissions and incentives in FY24. However, the company granted unanticipated discounts of Rs 525 crore on its services and incentives, reducing its net operating revenue to Rs 97 crore in FY24.

Where and How Much Did Cleartrip Spent in FY24?

Cleartrip allocated 40% of its overall costs to employee benefits in FY24, up 61.3% to Rs 400 crore. This amount includes Rs 180 crore in non-cash ESOP expenses. Excluding ESOPs, Cleartrip spent Rs 220 crore on salaries and compensation in the fiscal year ending March 2024.

In FY24, the firm spent Rs 128 crore on advertising and marketing, while commissions and brokerage fees were Rs 70 crore. Cleartrip also allocated Rs 91 crore for payment gateway charges, which is remarkable given that its revenue was only Rs 97 crore.

Total Expenses, Costs of Cleartrip

Its outsourcing, information technology, legal, and other overheads increased the overall cost by 26.7% to Rs 988 crore in FY24 from Rs 780 crore in FY23.

The increase in overall costs outpaced revenue growth, resulting in losses of 18.4% to Rs 810 crore in FY24, up from Rs 684 crore in FY23, with an EBITDA margin of -399%. In FY24, their expense-to-earnings ratio was Rs 10.1, down from Rs 15.9 the previous year.

In terms of competitiveness, MMT recorded sales of $792 million (Rs 6,650 crore) in FY24, with profits of $216.7 million (Rs 1,820 crore). Meanwhile, Ixigo, EaseMyTrip, and Yatra generated Rs 656 crore, Rs 590 crore, and Rs 448 crore in revenue, respectively.