Flipkart said on Thursday it has agreed to acquire online travel firm Cleartrip as the Walmart-owned e-commerce firm looks to expand its offerings in the world’s second largest internet market.

The deal values Cleartrip, which raised about $74 million prior to the acquisition, at about $40 million, a person familiar with the matter told TechCrunch. The distress sale comes as Cleartrip, like most other travel firms, faces unprecedented stress amid the global pandemic that has severely slowed down people’s appetite to move around.

Indian news outlet MoneyControl reported about the two companies exploring the deal last month.

Cleartrip raised about $74 million prior to selling to Flipkart for $40 million. (Data: Tracxn)

Cleartrip is also a partner of Amazon in India, powering the ticketing engine for the American e-commerce group. Asked if Amazon was fine with Cleartrip exploring a buyout deal with Flipkart, the company did not respond to a request for comment earlier this week.

Cleartrip will continue to operate as a separate brand, retaining all employees while working closely with Flipkart to “further develop technology solutions to make travel simple for customers,” the two companies said today.

Flipkart has been rumored to be working on introducing flight tickets purchase feature on its marketplace for over a year.

“The Flipkart Group is committed to transforming customer experiences through digital commerce. Cleartrip is synonymous with travel for many customers, and as we diversify and look at new areas of growth, this investment will help strengthen our wide range of offerings for customers. We welcome the Cleartrip team with their deep industry knowledge and technology capabilities to the Flipkart Group and look forward to providing deeper value and travel experiences for customers together,” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement.

This is a developing story. More to follow…