Indian online travel agency Yatra.com reported a 5% quarterly revenue decline Tuesday, a drop CEO Dhruv Shringi attributed to intensifying price competition in the consumer business.

“Over the course of the past few months and particularly in the last quarter, the country’s largest airline (IndiGo) has begun offering deeply discounted fares exclusively on its website and mobile app, cheaper than what are available to third-party distribution channels. That, I think, is the bigger and more concerning trends that we are witnessing at this point of time,” Shringi said during a conference call to discuss earnings.

Shringi also touched on the supply side constraints, with Indigo taking out aircraft because of the Pratt & Whitney engine issue.

Yatra’s adjusted air-ticketing margins fell by 21%, reflecting the impact of a challenging market environment.

Shringi also hinted that Yatra would be laying off over 100 people as a cost-cutting initiative, “We have initiated a cost optimization program, which includes streamlining over 100 positions within the company. We anticipate realizing the benefit of these cost savings starting in September.”

Yatra’s Also Looking at Acquisitions

Yatra’s corporate travel segment offered a bright spot. The company secured 34 new corporate customer accounts, representing an annual billing potential of INR 2,028 million ($24.2 million).

Shringi said Yatra is actively exploring strategic opportunities to strengthen its corporate travel segment, both organically and through acquisitions. He noted that the company has earmarked $20 million from its India IPO proceeds for acquisitions, which could go toward a single acquisition or multiple deals.

Listed on the Nasdaq since 2016, Yatra launched an India IPO in September last year. The IPO raised significant capital, with the primary issuance providing around $72 million for Yatra India to support its expansion.

“These are ongoing discussions, so it’s difficult to provide a precise timeline,” Shringi said. “We are evaluating multiple options, but I don’t want to set any expectations regarding when an acquisition might close. The outcome — whether one or multiple acquisitions — will only be clear once the details are finalized. As of now, there’s no commitment to an imminent acquisition.”

MICE Sector Cushions Revenue Decline

In addition to its corporate travel success, the company made strides in the Meeting, Incentives, Conferences, and Exhibitions (MICE) segment. A newly onboarded team began ramping up operations, and while contributions were modest for the June quarter, early indicators for the September quarter are promising, according to Shringi.