Naspers-owned Ibibo Group is merging its travel business with MakeMyTrips Indian travel business. By doing so it will create one of the biggest travel groups in the country. According to the deal, Naspers and Tencent will sell 100 per cent of Ibibo in exchange for a 40 per cent stake in the new entity making them the single largest shareholder in MakeMyTrip. Meanwhile, Ctrip will own a 10 per cent stake in the new entity. In January 2016, Ctrip had announced an investment of $180 million in MakeMyTrip. The new entity with have travel brands including MakeMyTrip, GoIbibo, RedBus, Ryde and Rightstay. These brands have together processed 35.1 million transactions during the financial year 2016. Also Read - World Environment Day 2020: From Planting Trees to Controlling Industrial Waste, 5 Things One Should Continue Doing Post Lockdown Period
While MMT will bring its share of domestic and outbound hotels as well as the air ticketing and holiday packages business, Ibibo will bring to the table its presence in fast growing travel segments such as bus bookings, hotels and air ticketing. Also Read - Batsmen at Advantage if Nothing Allowed to Shine The Ball: India Batting Coach Vikram Rathour
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Ashish Kashyap, the Ibibo founder and CEO will join MMTs team as Co-Founder and President. However the MMT founder Deep Kalra will continue to serve as Group CEO and Executive Chairman. Rajesh Magow who is another co-founder will also continue his role as MMTs India CEO.
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Earlier this year, MMT had announced a fundraising of $180 million from the CTrip, the Chinese online travel company. Soon after, in February Naspers invested $250 million in the Ibibo Group. Both the companies had been involved in a very costly battle in order to rule the hotel bookings business in India, which account for most of their revenues.
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