Online travel company MakeMyTrip has acquired ibibo in an equity deal in an undisclosed amount creating one of India’s leading travel groups. The deal will bring all brands of the Ibibo Group such as Goibibo, redBus, Ryde and Rightstay under MakeMyTrip. Together, Ibibo and MakeMyTrip processed 34.1 million transactions in 2015-16, MakeMyTrip said in a statement.
The transaction is expected to close by the end of December this year, provided it gets regulatory and shareholders’ approval. Upon closing of the transaction, MakeMyTrip will own 100% of ibibo Group. Naspers and Tencent will become the single largest shareholder in MakeMyTrip, owning a 40% stake and will contribute proportionate working capital upon closing, it added.
Commenting on the development, MakeMyTrip Founder Deep Kalra said: “We expect this deal to create an even more scalable business with the expertise to transform the booking experience for Indian travellers. I am delighted to be leading such a strong team in our next chapter of high-growth in this dynamic industry.”
Some of the key Indian M&As this year include, Myntra acquiring Jabong, Quikr acquiring CommonFloor, Titan Industries acquiring CaratLane, Yatra acquiring Mgaadi among others.
MakeMyTrip Founder Deep Kalra will remain Group CEO and Executive Chairman of the company and Co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip. Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a Co-founder and President of the organisation, MakeMyTrip said.
Additionally, prior to closing, a USD 180 million, 5-year convertible notes issued by MakeMyTrip to Ctrip.com International Ltd in January 2016 will also be converted into common equity, resulting in Ctrip having an approximately 10% stake in the combined entity, it added.
“India is a key market for Naspers and this deal reinforces our commitment to the country. ibibo and MakeMyTrip have built leading companies through their innovative use of technology to create exceptional experiences for people traveling throughout India and, increasingly, beyond,” Naspers CEO Bob van Dijk said.