Chinese travel agency Ctrip has acquired a 42% stake in Indian online travel company MakeMyTrip, making it the single largest shareholder in the company. The deal is worth around $180 million and will give Ctrip a significant presence in the fast-growing Indian travel market.
MakeMyTrip is one of the biggest players in the Indian online travel industry, offering a wide range of services including flight and hotel bookings, holiday packages, and car rentals. The company was founded in 2000 and has since grown to become a household name in India.
Ctrip’s investment in MakeMyTrip is part of its strategy to expand its presence in the global travel market. The Chinese company is already one of the largest online travel agencies in the world and has a significant presence in the Chinese market.
The deal between Ctrip and MakeMyTrip is expected to bring a number of benefits to both companies. For Ctrip, the investment will give it access to MakeMyTrip’s extensive network of travel partners in India and provide a platform for further expansion in the country. India is one of the fastest-growing travel markets in the world, with a rising middle class and increasing levels of disposable income driving demand for travel services.
MakeMyTrip, on the other hand, will benefit from Ctrip’s expertise in the travel industry and its strong financial position. The Chinese company has a track record of successful investments in other online travel companies, including India’s eLong and the US-based TripAdvisor.
The partnership between Ctrip and MakeMyTrip will also give them a competitive edge over other players in the Indian online travel market, such as Cleartrip and Yatra. Together, Ctrip and MakeMyTrip will be able to offer a wider range of services and leverage their combined resources to provide better deals and discounts to customers.
The acquisition is a win-win situation for both companies and is expected to fuel further growth in the Indian travel industry. With the support of a global player like Ctrip, MakeMyTrip will be able to expand its reach and offer more innovative travel solutions to its customers. At the same time, Ctrip will be able to tap into the lucrative Indian market and strengthen its position as a leading global travel agency.
The deal also highlights the growing interest of Chinese companies in investing in Indian startups. India is currently the world’s fastest-growing major economy, and Chinese companies are looking to capitalize on the country’s rapid growth and rising consumer demand. This trend is likely to continue as more Chinese investors see the potential of the Indian market and seek opportunities for expansion and collaboration.
Overall, the Ctrip-MakeMyTrip deal is a significant development in the Indian online travel industry and is expected to have a positive impact on both companies. It will allow them to leverage each other’s strengths and expand their presence in the global travel market. With their combined resources, Ctrip and MakeMyTrip will be able to offer a more comprehensive range of services and provide better value to customers. Furthermore, the deal serves as a testament to the potential of the Indian market and the growing interest of global players in investing in Indian startups.