India is seen as next big internet market owing to digital revolution, economic growth and potential market strength. MakeMyTrip and Goibibo join hands to become a market leader in travel industry of Indian online travel segment. (IndiaTimes, 2016) views this as a potential move to grab Indian market and tighten its grip over the market that MakeMyTrip already enjoys 35% stake.
Table of Content
MakeMyTrip is a travel company operating through online booking portal –http://www.makemytrip.com. It was founded in 2000 by Deep Kalra. It is an Indian company with headquarter in Gurgaon, Haryana.
About Ibibo Group
Ibibo group is an online travel company founded by Ashish Kashyap in 2007.(Livemint, 2016) states that the company is a subsidiary of Nasper. Nasper has 91% stake and TenCent has 9% stake in the Ibibo Group. Company operates through following brands.
- Goibibo - Hotels and Air ticketing portal
- redBus – Bus booking website portal
- Ibibo (currently owned by Nasper) will be merged into MakeMyTrip
- Merger is through stock transaction
- (Medianama, 2016), Nasper-TenCent combine will become largest shareholder in new entity with 40% stake
- (Medianama, 2016), Chinese OTA Ctrip, will have around 10% stake in new entity
- (IndiaTimes, 2016) estimates the merger through sources at about $1.8-$2.0 billion
- Morgan Stanley – financial advisor of MakeMyTrip
- Goldman Sachs – financial advisor of Ibibo Group
- All brands of Ibibo group like Goibibo, redBus, Ryde and Rightstay would come under MakeMyTrip (new entity)
Business Share in Travel Industry
New organization Structure
- Deep Kalra, Founder of MakeMyTrip – Group CEO and Executive Chairman, MakeMyTrip
- Rajesh Magow, Co-founder of MakeMyTrip – CEO India, MakeMyTrip
- Ashish Kashyap, Founder and CEO of ibibo Group – Co-founder and Presidnet of the organization (MakeMyTrip Executive team)
IndiaTimes. (2016, 10 19). EconomicTimes. Retrieved from EconomicTimes: http://economictimes.indiatimes.com/small-biz/startups/online-travel-portals-makemytrip-and-ibibo-announce-merger/articleshow/54921415.cms
Livemint. (2016, 10 19). Livemint. Retrieved from Livemint: http://www.livemint.com/Companies/W9atx25k79RpQcdbRxWuTP/MakeMyTrip-to-buy-rival-ibibo-Group.html
Medianama. (2016, 10 19). Medianama. Retrieved from Medianama: http://www.medianama.com/2016/10/223-makemytrip-ibibo/