Flipkart-owned Cleartrip has entered the train booking segment through a partnership with IRCTC, as the Walmart-backed e-commerce company gears up for an IPO. The move marks Cleartrip’s expansion into the highly competitive online travel agency (OTA) space, where players like MakeMyTrip and Ixigo already have a strong presence. Ixigo currently leads the train reservations segment with an estimated 60% market share.
Speaking to Business Today, Gaurav Patwari, Chief Business Officer at Cleartrip, said, “This partnership is a step towards that, and since the train is such a big business idea, such a large number of passengers traveling daily on the train, which is close to about 23 million to 25 million, it definitely made a lot of sense for us to go live on the train.”
According to a Videc report, the rail OTA market in FY23 is expected to grow at a CAGR of 23% from FY23 to FY26 to reach $2.2 billion.
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This development comes at a time when the air ticketing industry is facing pressure due to geopolitical uncertainty, impacting balance sheets across OTA operators. In this context, sectors such as hotels and train reservations are emerging as potential growth vehicles. Patwari acknowledged this, noting that one factor is the sheer size of the rail market and its importance as a service offering, while another is its ecosystem advantage. “Cleartrip has a huge advantage in working with Flipkart and Flipkart has a very strong distribution in tier II and III cities,” he said.
Regarding competition, Patwari said that while Ixigo leads the rail segment, most platforms have primarily focused on enabling bookings. “We’re thinking beyond that. For us, it’s not just about making trains accessible to existing and new customers, but about what comes next.”
“The real opportunity lies in travel innovation. India is a very complex market and this is where concepts like multi-modal virtual connectivity come in. We want to seamlessly blend buses, trains and planes to create a more integrated and comprehensive travel experience,” he added.
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Currently, about 80% of train bookings are made online, with nearly 70% routed through IRCTC directly and about 10% through offline or B2B agents, leaving 20-25% to online travel agencies. While this represents room for growth, the sector continues to operate on thin margins. According to Patwari, the strategy is to build the right business mix, where some lines of business (LOBs) like trains help in customer acquisition, while others like hotels and holidays contribute to higher margins.
According to reports, Cleartrip reported a 70% increase in operating revenue to Rs 169.3 crore in FY25, up from Rs 99.7 crore in FY24. However, the growth was accompanied by significant spending on customer acquisition, with Rs 608.2 crore allocated to discounts and cashbacks. The company narrowed its net loss by 20% to Rs 651.1 crore in FY25, compared to Rs 810.3 crore in the previous fiscal, indicating gradual progress towards profitability.
Looking to the future, Cleartrip plans to integrate travel more deeply within the broader Flipkart ecosystem. While he declined to share specific financial metrics, Patwari said the company is working to improve profitability. “Growth has been very strong and we are consistently outperforming industry growth. Post-acquisition, we have invested heavily in technology and customer experience, which is clearly driving momentum. We are gaining market share, working to improve both profitability and bottom line, and our focus remains on striking the right balance between growth and profitability.”
With Flipkart eyeing a public listing, Cleartrip’s expansion into rail signals a broader push to beef up its full play in the travel space, positioning itself broadly in a market where frequency and cross-selling will determine the winners.
