wordpress blog stats
Connect with us

Hi, what are you looking for?

China’s CTrip invests $180 million in MakeMyTrip

MakeMyTrip
Online travel agency MakeMyTrip has raised $180 million in convertible bonds from China’s Ctrip. Ctrip will also be buying MakeMyTrip’s shares from the open market. After converting the bonds to shares and purchase in the open market, Ctrip would effectively own 26.6% of MakeMyTrip’s stock. Upon completion of the investment, Ctrip will acquire the right to appoint a director to the MakeMyTrip board of directors, the company said in a release.

VCCircle points out that Ctrip would become the single largest shareholder in the company ahead of  SAIF Partners, T Rowe Price, Tiger Global and company founder and CEO Deep Kalra. “Through this transaction, Ctrip has now gained exposure to India’s fast growing online travel market,”Ctrip CEO and co-founder James Liang said.

Financials

For the quarter ended September 30, MakeMyTrip’s losses stood at $12.22 million as compared to $6.9 million in the preceding quarter. However, the net revenues (revenues less service costs), increased 3.6% to $33.2 million from $32.05 million from the same period last year. On a sequential basis, net revenues decreased 12.86% from $36.36 million. Air Ticketing accounted for 54.70% of MakeMyTrip’s net revenues for the quarter, up from 51.97% in the preceding quarter.

Value+ launch 

In November 2015, MakeMyTrip launched Value+, a brand of budget hotel rooms, on its website. Value+ will offer rooms starting at Rs 1,000 per night, and was thought out because MakeMyTrip’s customers complained about the quality of services provided by budget hotel aggregators (like Oyo Rooms and Zo Rooms).

Similarly, its competitor, Goibibo launched a new section on its website and mobile app called GoStays which aggregates unbranded budget accommodations across India. The platform is live in 72 cities, 862 properties and according to the company ​​this translates to about 10,000 rooms per day for customers to choose from.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....

News

By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...

News

By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...

News

By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...

News

This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like

News

In view of funds raised by the platform, Swiggy announced that it would now pursue initiatives like AI while also strengthening its core business. ...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ