MakeMyTrip and Goibibo have joined together to become India’s largest TravelTech venture. Goibibo is owned by NASPER groups. Though the announcement of the deal was made in October 2016, the merging took place when ibibo contributed about $82.6 Million in cash for MakeMyTrip.
The deals which will be the biggest venture in TravelTech industry have received the approval of The Commission Companion. MakeMyTrip is about to close all their transaction by January 2017.
In the deal, MakeMyTrip gets the total amount of $38.91 million Class B shares from Ibibo group. The entity which is owned by NASPER and TENCENT groups have purchased MakeMyTrip for 413,035 of their ordinary shares at $21.19 per share for a total cash consideration of $8.75 Million.
The deal doesn’t involve Ibibo group’s 14% stake in NASPER’s payment business PayU and 52% stake in business-to-business (B2B) online travel company Tek Travels.
However, according to the merging conditions, MakeMyTrip will receive payments from Ibibo group for straight five years depending based on certain conditions and the company will still own 10% stake in the new entity.
Ibibo owners NASPER group also owns a bus aggregator-RedBus and ride collaborator-Ryde. The companies which are owned by the NASPER groups together made over $34 Million transactions in the previous financial year. Read more news.