China's Ctrip invests $180m in India's MakeMyTrip

Ctrip will make its investment through the purchase of MakeMyTrip's convertible bonds. In addition, according to a statement, Ctrip will have permission to buy shares in MakeMyTrip on the open market, meaning it could potentially own up to 26.6% of the company, making it the largest single shareholder. It will also have the right to a seat on MakeMyTrip's board of directors.

Both companies expect the investment to open up business opportunities by gaining access to each other's customers and booking networks. Qunar - a Chinese travel site originally controlled by search giant Baidu that merged with Ctrip last year - may also gain a window into the India travel market, along with hotel booking site eLong, in which Ctrip holds a 38% stake.

MakeMyTrip saw considerable support from VC investors prior to its 2010 IPO, some of which continue to hold significant stakes. The company's most recent annual report identified SAIF Partners as the largest shareholder, with 16%, while Tiger Global holds 6%.

Ctrip, which was co-founded by Neil Shen, now managing partner at Sequoia Capital China, also received VC backing before going public in 2003.

Recent months have seen a number of investments by Chinese tech companies in their Indian peers: Alibaba Group committed $680 million in September for a 20% stake in mobile payment and commerce platform Paytm, on top of the 20% stake held by its finance affiliate Ant Financial Services. Also in September, ride-hailing app developer Didi Kuaidi invested an undisclosed amount in its Indian counterpart Ola.

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