Naspers exits India's MakeMyTrip to Ctrip

According to a regulatory filing, the all-stock transaction will raise Ctrip’s holding in MakeMyTrip to 49%, making it the company’s largest shareholder. Naspers will exchange its shares in MakeMyTrip for a 5.6% stake in Ctrip. Given the current valuations of both companies, the deal is worth roughly $1.2 billion.

Founded in 2000, MakeMyTrip is a pioneering online travel company in India catering to both domestic and overseas trips. Through its websites and mobile apps, customers can book flights, hotel rooms, rail and bus tickets, and rental cars, and also purchase travel insurance. In addition, the company takes phone bookings and partners with offline travel agents.

For the year ended March 2018, MakeMyTrip reported revenue of $675 million, up from $448 million the year before. Over the same period, its net loss grew from $110 million to $220 million.

Naspers acquired its stake in MakeMyTrip in 2016, when its portfolio company ibibo Group was acquired by MakeMyTrip in an all-stock transaction. Ctrip invested $180 million in the company the same year. Both Naspers and Ctrip later participated in a $330 million investment in 2017.

“We have worked with Ctrip in the past years and are excited to take this partnership to the next level,” said Deep Kalra, chairman and group CEO of MakeMyTrip, in a statement. “We will leverage this investment to benefit from the tremendous growth potential in travel and tourism between our two countries.”

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• Topics
• South Asia
• Greater China
• Consumer
• Technology
• Trade sale
• India
• China
• Naspers
• Exit
• TMT