China’s Ctrip.com Invests $180 Mn In MakeMyTrip

China’s Ctrip.com Invests $180 Mn In MakeMyTrip

Online travel company, MakeMyTrip, has announced that China’s Ctrip.com International, Ltd., a leading travel service provider has invested about $180 Mn in MakeMyTrip through convertible bonds.

In addition, MakeMyTrip has granted Ctrip permission to acquire MakeMyTrip shares in the open market, so that combined with shares convertible under the convertible bonds, Ctrip may beneficially own up to 26.6% of MakeMyTrip’s outstanding shares. As per the terms of the deal, Ctrip will acquire the right to appoint a director to the MakeMyTrip board of directors.

The company will focus on further strengthening its leading market share in the Indian online travel market by offering customers the best mobile booking experience across its full service travel products platform.

Ctrip CEO and Co-Founder, James Liang commented, “Today’s announcement marks the beginning of the strategic relationship between Ctrip and MakeMyTrip. Through this transaction, Ctrip has now gained exposure to India’s fast growing online travel market.”

Morgan Stanley acted as the exclusive financial advisor to MakeMyTrip while Latham & Watkins LLP served as the legal advisor to MakeMyTrip on this transaction.

Founded in 2000 by Deep Kalra, MakeMyTrip is India’s leading online travel company created to empower Indian traveller with instant booking and comprehensive choice. Beginning its journey from US-India travel market, the company followed its success in the US by launching its India operations in 2005. Over time, the website has evolved into a full-service portal extending its offerings to online hotel-reservations, holiday-package bookings, and rail & bus ticket bookings.

MakeMyTrip’s Investments & Acquisitions So Far:

February 2011: Acquired 79% stake in Singapore-based Luxury Tours & Travel Pte Limited (LTT) for around $3 Mn.

August 2011: Acquired majority stake of 76.6% for $18.5 Mn in online travel meta search engine iXigo along with SAIF Partners

November 2011: Acquired Delhi based MyGuestHouse

November 2012: Acquired majority stake in Thailand-based hotels aggregator ITC Group for $3.2 Mn. Also acquired South East Asia-focused Hotel Travel Group for $25 Mn.

February 2014: Acquired entire equity interest in EasyToBook.com for around $5 Mn to strengthen its travel technology stack and improve its hotel offerings in Europe.

September 2014: MakeMytrip launched an $15-Mn innovation fund to invest in startups working in travel-related technology.

January 2015: It acquired a minor stake in Bangalore-based digital hotel marketing solutions company Simplotel for an undisclosed amount from the Innovation fund.

April 2015: Acquired Bangalore-based travel planning website Mygola. The acquisition was done through company’s Innovation Fund

May 2015: Acquired 18%  stake Inspirock Inc which is an online planning tool for developing customizable itineraries. The deal was made by the company’s Innovation Fund.

July 2015: Partnered with travel and holiday information portal, HolidayIQ and invested $15 Mn.

July 2015: Invested $5 Mn in Bona Vita Technologies.

In November last year, the company also launched its own brand of budget rooms called Value+.

Other operating in this space include – Cleartrip, GoIbibo, Yatra.

MakeMyTrip reported revenue of $62.5 Mn in the quarter ended September 30, 2015, an increase of 3.2% (an increase of 12.1% in constant currency) over revenue of $60.5 Mn in the quarter ended September 30, 2014. 

Ctrip joins other leading Chinese conglomerates who have been investing in Indian startups i.e. Alibaba and Tencent. Recently, China-based Didi Kuaidi, a cab-hailing startup has invested in Ola.

You have reached your limit of free stories
This Diwali, Get Up To 72% Off On Inc42 Plus

Become A Startup Insider With Inc42 Plus

Offer Fading Away This Week
countdownmail.com
2 YEAR PLAN
₹19999
₹6999
₹291/Month
UNLOCK 65% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹3999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

China’s Ctrip.com Invests $180 Mn In MakeMyTrip-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

China’s Ctrip.com Invests $180 Mn In MakeMyTrip-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

China’s Ctrip.com Invests $180 Mn In MakeMyTrip-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

China’s Ctrip.com Invests $180 Mn In MakeMyTrip-Inc42 Media
China’s Ctrip.com Invests $180 Mn In MakeMyTrip-Inc42 Media
You’re in Good company