Norwest Venture Partners, a California-based venture capital firm has invested an undisclosed amount of cash into Yatra Online, an Indian travel web site. According to NVP the current spending power of Indian consumers is at $420 billion and the Indian travel market will reach $50 billion by 2009.


Norwest Venture Partners, a California-based venture capital firm has invested an undisclosed amount of cash into Yatra Online, an Indian travel web site.

“The market opportunity appears big. NVP estimates the current spending power of Indian consumers at $420 billion. The firm sees the Indian travel market reaching $50 billion by 2009. Meanwhile, revenue in India’s software and services sector is expected to grow to $148 billion by 2012 from $22 billion during 2005, according to a Nascomm/McKinsey report”. [source]

Yatra, the Indian travel website makes it possible for Indian consumers and businesses to book airline, train and bus tickets. It also takes care of hotel and car bookings. consumers can make their bookings online or by using their mobile handsets. They can also phone Yatra’s call centers.

The service is expected to start operating in the first half of 2006. The New Delhi-based company plans to employ 100 people at the time of launch.

Palo Alto, California-based Norwest Venture Partners (NVP) made the investment along with Reliance Capital.

NVP partner Vab Goel said, “You look at the middle class-their buying power is changing. In the past, it has been about save, save, save. But now they are getting into the same trend like the U.S. where people want to spend”. [source]

 

 

 

 

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