India’s leading Online travel firm MakeMyTrip has announced merger with the rival Ibibo group in an all-stock deal. The deal will create the biggest player in the fast-growing flight, hotel and bus bookings market in the country. The value of the combined entity is estimated around $ 1.8 billion.
The combination will bring together a bouquet of leading consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay, which together processed 34.1 mm transactions during FY2016.
Naspers and Tencent, the joint owners of Ibibo Group (91% owned by Naspers and 9% owned by Tencent), will become the single largest shareholder in MakeMyTrip, owning a 40% stake. Upon closing of the transaction, MakeMyTrip will own 100% of ibibo Group.
Following the closing of the proposed transaction, Founder Deep Kalra will remain Group CEO and Executive Chairman of MakeMyTrip and Co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip.
Today’s announcement is a significant step forward for the rapidly growing travel industry in India. 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.
– Deep Kalra, Chairman and Group CEO of MakeMyTrip.
The merged entity will make the going tough for rivals Cleartrip and Yatra. MakeMyTrip has been the strongest player in the online airline ticketing space. Ibibo’s core strength, too, is airline ticketing, but it has a particularly strong presence in online bus ticketing, following its acquisition of redBus in 2013.
The Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a Co-founder and President of the organization.
Since I founded ibibo in 2007, we have innovated and grown to become one of the leading travel companies in India, providing solutions not just for travellers, but for suppliers too. Deep, Rajesh and I saw a great opportunity to join forces, and I am excited that this merger enables all of us to continue a great journey together as the leading travel group in India.
– Ashish Kashyap, CEO ibibo Group.
The transaction is expected to close by the end of December 2016 and is subject to approval by MakeMyTrip shareholders and regulatory approvals.