Bangalore based Hotel rooms aggregation and reservation company, MagicRooms.in has been acquired by Yatra.com. Yatra.com is the online travel agency which has raised Rs 200 crore venture capital investment in Apr 2011. The company is aggressively looking to expand its services and presence. MagicRooms.in is a Nexus Venture Partners backed company and got an investment of Rs 7 crores from the firm. It is still unclear what is the fate of Nexus’s stake in MagicRooms.in.
MagicRooms offers global distribution system (GDS) to travel agents. The system allows travel agents access to a live inventory of around 3,000 hotels across India. The company charges a commissions on bookings done through this system. MagicRooms has been expanding rapidly in the past one year by doing promotion and marketing activities. They have also signed up MakeMyTrip.com as a customer.
With this acquisition, Yatra is aggresively trying to compete with other online travel agents such as MakeMyTrip and Cleartrip. Yatra has been growing inorganically post Rs 200 crore funding. In October 2010, they acquired a Delhi based ticket consolidation company called Travel Services International.