Tripfactory , an outbound tour marketplace , may shut down operations by end of 2019 after failing to secure any fresh capital investments as per sources.In 2015, the company had raised around $10 million in Series A funding from Aarin Capital Partners .Since then there has been no fresh investments and no interest among venture capitalist firms owing to Tripfactory’s slow growth and a suspect business model . Frequent Business model changes and operational losses have mounted while sales continue to plummet with a negative EBIDTA margin in FY-18-19.
As per confirmed sources Pai family of Aarin Capital Partners has declined to make any followup investments in the firm.It could result in a litigation battle as payments of hundreds of bookings for the future travel has been confirmed by Tripfactory and millions of dollar of vendor payment is still to be paid.Start-ups failing after all the glitz and blitz is not a new thing in Indian Travel market .Fresh investments have dried up after Goods & Services Tax introduced by right wing BJP Government has reduced the margins for travel agents.
According to a new report from the Local Data Company (LDC), almost 700 high street travel agencies closed last year amid stiﬀ competition from online rivals. LDC’s retail and leisure trends report found that 679 travel agency outlets closed in 2017, accounting for the third highest number of closures among high street sector operators. Indian Travel market is highly competitive with players like Makemytrip and Yatra dominating the travel space.Previously , UAE based Destination management company North Tours with Indian operations closed down in 2017 with 100 Mn AED payments pending in the form of mortgages and loans
Website – www.tripfactory.com