E Trav Tech Limited

Business model What it is: E Trav Tech Ltd is a B2B travel wholesaler — a consolidator. Its customer is never the traveller; it is the travel agent. Etrav aggregates supply at scale, then distributes it to roughly 35,000 small Indian agencies, 1,200 distributors, and 600+ API/white-label clients who could never access that supply on their own terms. Why the middle position exists: Airlines and hotel chains want to move inventory in blocks and get paid early; they don't want to manage thousands of tiny agency relationships. Small agents want net fares, credit, and a booking system; they have no bargaining power and no tech budget. Etrav absorbs both problems. It puts up cash and takes inventory risk in exchange for a wholesale discount, and it puts up technology in exchange for distribution lock-in. The three things it actually owns: Accreditations and supplier relationships (IndiGo, Emirates, Etihad, Air India; Amadeus, Galileo, Sabre; Expedia, Agoda, WebBeds, Hotelbeds) Distribution — the agent network and the API/XML layer that makes switching costly Working capital, which is the real bottleneck Corporate structure: the parent holds three subsidiaries — Eagle Crest Tourism LLC and Eagle Crest Global (destination management, acquired 2023) and Codemagen Technologies (tech, incorporated 2024). This is deliberate: flights generate cash and volume, the subsidiaries are where margin is supposed to come from. The core mechanic: buy inventory in bulk, upfront, at 30–50% off published fares → hold it → resell at net fares plus a spread. Selling forward what you have already paid for is what earns the discount, and it is also why the business is permanently hungry for cash. The deck states the ratio plainly: every ₹1 crore of working capital supports about ₹4 crore of turnover. Revenue model Four product lines, each monetised differently.

1Flights — four separate streams, not one commission Stream How it earns Deposit incentives 2–5% earned on money deposited with airlines upfront Commissions "Cut and pay" basis, linked to real-time volume targets; calculated on basic fare Markup income Spread on pre-purchased tickets, hotel rooms, land transfers Segment optimisation Profit maximised by allocating inventory across routes Note that two of these four are pure functions of how much cash Etrav can put down. This is the clearest link between the balance sheet and the P&L.

2Hotels — buys room blocks in bulk, resells them standalone or bundled into packages; separately distributes 500,000+ properties via API. Gross margin is 4% of GTV today, targeted at 8% as own-ticketing and food sales come in. Ticket sizes are ₹15–20k versus ₹8–10k for flights, so each transaction carries more absolute margin.

3Eagle Crest (DMC) — ground handling, transfers and sightseeing for Indian outbound tourists. Margins by market: Vietnam 20%, Bali 15%, Dubai 10%, Thailand 7–10%, new locations 10–15%. The business was moving entirely to a pre-purchase model from April 2025, with blended margin targeted to rise from 15% to 17% by FY27.

4Codemagen — standard IT model: an upfront implementation payment plus a recurring monthly, usage-based SaaS fee. Sells to Etrav internally and to third parties. This is the only line with genuinely scalable margins, and also the least proven. In one sentence: Etrav converts working capital into supplier discounts, and converts a distribution network plus API into the ability to resell those discounts at a spread — with hotels, DMC and software layered on top specifically because the flight spread is too thin to build a company on.