MIH Group, a subsidiary of Naspers, and owner of Ibibo, has acquired a 51% stake in Gurgaon-based travel company Tek Travels, which owns B2B travel portal Travel Boutique Online, reports The Economic Times. The financial details of the transaction have not been disclosed.Travel Boutique Online, which launched in 2006, offers travel services for travel agents, including airline, train and hotel reservation and holiday package deals. It also provides charter and choppers and helps with car rentals, bus bookings and travel insurance. The company offers white-labelled solutions for agents to offer B2B and B2C travel bookings, online. The existing management of the company will continue to run it, according to the report.
MIH Group, which already runs travel portal Goibibo.com, hopes to benefit from the company’s offerings in the domestic online business travel space, with this acquisition, Tek Travel intends top expand in international markets. We feel that MIH might want to integrate Tek Travel’s B2B solutions to its existing travel property, getting access to its inventory and technology platform. In India, MIH has an active presence in the e-commerce space through internet assets such as ibibo, Goibibo.com, Tradus.in, payment gateway – Payu.in, and Gaadi.com.
The Online Travel sector, has seen various acquisitions since last year with big OTAs acquiring smaller start-ups for technology and product acquisition. MakeMyTrip Limited acquired 29% stake Delhi based My Guest House Accomodation for $1Mn with an an earn out structure based upon the achievement of various business parameters spread over eight years. It also acquired 79% equity stake in Singapore-based Luxury Tours & Travel Pte Ltd for $3 Mn. Last August, SAIF Partners & MakeMyTrip acquired a 76.6% stake in Travel meta search engine iXiGO.com for $18.5M.