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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

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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.

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