Economy

Flipkart eyeing stake in online ticketing platform BookMyShow

Flipkart eyeing stake in online ticketing platform BookMyShow”

Amid competition from cash-burning competitors, a sale of minority stake to Flipkart may help BookMyShow revive its slowing sales growth. Both companies have a common investor in Accel Partners, one of the oldest and reputed early-stage VCs in the country.Flipkart has been an active investor in other internet businesses and its acquisitions like Myntra, Jabong and PhonePe have borne fruit. But the two other people cited above said a stake sale is more likely than an outright sale. Mint couldn't ascertain the amount that Flipkart plans to invest in Bookmyshow, which last raised Rs 550 crore in July 2016 from Stripes Group, Accel Partners, SAIF Partners and Network 18 at a valuation of more than Rs 3,000 crore.

Currently, Reliance Industries-owned Network18 is the single largest shareholder in BookMyShow with a 39 percent stake.

Flipkart and BookMyShow did not respond to an email query regarding this move. It is one of the very few profitable internet business in India. For BookMyShow, the 100 million claimed customers on Flipkart's platform are all potential customers, giving the company access to all of them.Paytm, which realised the importance of having repeat buyers through its offering of mobile mobile recharges, stepped into the online ticketing space since the market is far more high-value.

At a time when Amazon is expanding beyond ecommerce through Prime, this could be Flipkart's move to stay ahead of competition and ensure customers stay loyal to Flipkart.

Flipkart, which secured almost $2.5 billion in funding from Japan's SoftBank Group in August, did not respond to a request for comment.

Flipkart is India's most acquisitive internet firm. Since inception in 2007, it has bought or invested in over 20 companies. Last month, Flipkart bought F1 Info Solutions, which offers fix services for mobile and electronics, for an undisclosed amount.

Since its launch in 2007, Flipkart has bought or invested in over 20 companies, with the largest acquisition being an online fashion retailer Myntra for over United States dollars 330 million in May 2014. Earlier this year, it also tried to buy Snapdeal for almost $1 billion in stock but the deal collapsed in August after Snapdeal chose to continue operations on its own.



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