EaseMyTrip, a prominent online travel aggregator (OTA), has taken a significant step towards diversifying its service portfolio by venturing into the insurtech sector. The OTA unveiled its new insurance arm, named EaseMyTrip Insurance Broker, which will provide insurance brokerage services to customers across India.
The newly established subsidiary, EaseMyTrip Insurance Broker, operates as a distinct entity under the parent company and will be led by EaseMyTrip’s Co-founder and CEO, Nishant Pitti, who assumes the role of Director for the insurtech vertical.
EaseMyTrip aims to leverage its entry into the insurance space to create specialized products that address customer needs effectively. The move is expected to open up alternate revenue streams and enhance business operations for the travel tech giant.
Nishant Pitti, CEO of EaseMyTrip, expressed excitement about the launch of the insurance subsidiary, stating, “We are elated to announce the launch of EaseMyTrip Insurance Broker Private Limited. This new subsidiary is a major step forward for us as we diversify our services and enter the insurance market. We aim to offer a complete travel ecosystem for our customers, and this new addition is a progressive step towards the same.”
The announcement follows EaseMyTrip’s recent disclosure to the bourses about the establishment of a new subsidiary dedicated to insurance brokerage services. The subsidiary, with an authorized and subscribed capital of INR 75 Lakhs each, underscores the company’s strategic move into the insurance sector.
EaseMyTrip had signaled its intent to enter the insurance space during its annual general meeting in August 2022, where an amendment to its charter paved the way for venturing into general insurance. The board granted an in-principle nod for the insurance foray in May of the following year.
This strategic shift towards insurance aligns with EaseMyTrip’s broader expansion plans, including a proposed fundraise of up to INR 1,000 Crores through a preferential issue earlier this year. The company has been actively acquiring stakes in various entities to diversify its product offerings. In December 2023, EaseMyTrip acquired a non-controlling stake of approximately 13% in Eco Hotels and Resorts, entering the hotel and hospitality industry.
Furthermore, the company received board approval to acquire a 51% stake each in three Indian travel companies in July 2023: Guideline Travels Holidays, TripShope Travel Technologies, and Dook Travels.
Financially, EaseMyTrip has demonstrated robust performance, with a 66% YoY growth in consolidated net profit to INR 47 Crores in the second quarter of FY24, alongside a 31% YoY increase in operating revenue to INR 142 Crores.
Shares of Easy Trip Planner, the parent company of EaseMyTrip, concluded 3.25% lower at INR 44.29 on the BSE on Wednesday.
