Cleartrip to challenge Ixigo, MakeMyTrip, to foray into train bookings

Flipkart-owned Cleartrip has entered the train bookings segment through a partnership with IRCTC, as the Walmart-backed e-commerce major prepares for its IPO. The move marks Cleartrip’s expansion in the highly competitive online travel agency (OTA) space, where players such as MakeMyTrip and Ixigo already have a strong presence. Ixigo currently leads the train bookings segment with an estimated 60% market share.

Speaking to Business Today, Gaurav Patwari, Chief Business Officer of Cleartrip, said, “This partnership is a step towards that and train being such a big business idea, such a large number of daily passengers flying on train, which is close to about 23 million to 25 million, it definitely made a lot of sense for us to go live on train.”

As per Videc report, the OTA rail market in FY23 is projected to grow at 23% CAGR from FY23 to FY26 to reach $2.2 billion.

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The development comes at a time when the air ticketing business is facing pressure due to geopolitical uncertainties, weighing on balance sheets across OTA players. In this context, segments such as hotels and train bookings are emerging as potential levers for growth. 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 ecosystem advantage. “Cleartrip has a huge advantage of working with Flipkart and Flipkart has a very strong distribution in Tier II, Tier III cities,” he said.

On competition, Patwari said that while Ixigo leads the rail segment, most platforms have focused primarily on enabling bookings. “We are thinking beyond that. For us, it’s not just about making trains accessible to existing and new customers, but about what comes after.”

“The real opportunity lies in travel innovation. India is a highly complex market and that’s where concepts like multi-model virtual interlining come in. We want to seamlessly blend bus, train and air to create a more integrated, end-to-end 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 around 10% via offline or B2B agents, leaving 20–25% to OTAs. While this presents headroom for growth, the segment continues to operate on thin margins. According to Patwari, the strategy is to build the right business mix, where some LOBs (lines of business) like trains aid customer acquisition, while others such as hotels and holidays contribute higher margins.

According to reports, Cleartrip reported a 70% rise 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 customer acquisition spending, with Rs 608.2 crore allocated to discounts and cashbacks. The company narrowed its net losses by 20% to Rs 651.1 crore in FY25, compared to Rs 810.3 crore in the previous fiscal year, signalling gradual progress towards profitability.

Looking ahead, Cleartrip plans to integrate travel more deeply within Flipkart’s broader ecosystem. While declining to share specific financial metrics, Patwari said the company is improving on profitability. “Growth has been very robust and we are consistently outperforming industry growth. Post-acquisition, we’ve invested heavily in technology and customer experience, which is clearly driving momentum. We are gaining market share, improving both top line 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 strengthen its full-stack travel play, positioning itself for scale in a market where frequency and cross-sell will define winners.