Cleartrip, the Flipkart-owned online travel platform, has reported a net loss of ₹651 crore for the financial year ended March 31, 2025 (FY25), even though operating revenue rose by 69% year-on-year.
Operating revenue stood at ₹169 crore in FY25, up from ₹100 crore in FY24.
What’s Driving the Losses
Several cost pressures and strategic spends have kept profitability elusive:
- Total expenses in FY25 were about ₹886 crore.
- Heavy discounts and cashbacks also played a key role in eroding margins. Though revenue from services and commissions increased, offers to consumers limited net revenue gains.
- Expenses likely include employee costs, finance charges, operational costs, and marketing/advertisement outlays. While the FY25 breakdown isn’t fully detailed in the same way as FY24, historical trends show these heads have been major drains.
How FY25 Compares with FY24 for Cleartrip
| Metric | FY24 | FY25 |
|---|---|---|
| Operating revenue | ~₹100 crore | ~₹169 crore |
| Net loss | ₹810 crore (FY24) | ₹651 crore (FY25) |
| Expenses | ₹988 crore (FY24) | ₹886 crore (FY25) |
So while the revenue growth is strong, Cleartrip has reduced its loss somewhat compared to FY24, but it remains deep in the red. NewsBytes
Implications & What Lies Ahead
- Need for cost rationalization: To move toward profitability, Cleartrip will need to control discounting, optimize marketing spend, and ensure operational efficiency.
- Balancing growth vs margin: Many OTAs (online travel agencies) scale by pushing growth first, but long-term sustainability depends on improving margins.
- Competitive pressures: Rivals who have already moved toward or achieved profitability may be in a stronger position to win customer loyalty and scale.
- Potential for new strategy pivots: Cleartrip may lean more heavily into higher-margin verticals (e.g. hotels, corporate travel), reduce incentives/cashbacks, or explore partnerships to reduce cost burdens.
Cleartrip’s FY25 result — a ₹651 crore loss against a ₹169 crore revenue — shows progress in revenue growth but also highlights the uphill task of turning scale into sustainable profits.
