Make My Trip, ibibo merger to revolutionise the online travel space

Make My Trip and Goibobo group are all set for one of the biggest mergers in the online travel space. MakeMyTrip (MMYT) is one of India’s oldest travel website operator and has shown interest in buying out its rival ibibo Group to become the biggest player in that sector.

ibibo is owned by South Africa-based Naspers Ltd with a 91 percent stake, and the rest being owned by China’s Tencent Holdings. The deal is likely to be sealed in December and is estimated to be in the range of $400-700 million, according to reports.

For the past few years, MMYT has been facing stiff competition from startups like OYO, FabHotels and Paytm, as well as incumbents such as Yatra and Cleartrip. The deal is valued at $720 million. Post the deal, Naspers and Tencent are likely to own 40 percent stake in MMYT and China’s biggest online travel service provider Ctrip.com International Ltd, which will invest $180 Million through convertible bonds, will have about 10 percent stake.

The merger will help MMT to invest in futuristic technologies of ride sharing, accommodation, mobile and booking solution, data science technology, and improve consumer experience.