Chinese travel booking giant Ctrip valued at over $10 billion will invest US$180 million in MakeMyTrip Limited, India's largest online travel company. In addition, MakeMyTrip has granted Ctrip permission to acquire MakeMyTrip shares in the open market, so that combined with shares convertible under the convertible bonds, Ctrip may beneficially own up to 26.6% of MakeMyTrip's outstanding shares.
Upon completion of the investment, Ctrip will acquire the right to appoint a director to the MakeMyTrip board of directors.
Deep Kalra, Founder and Group CEO, MakeMyTrip said, "We are delighted to have Ctrip invest in us. Ctrip is the dominant market leader in the online travel market in China. We believe there are many similarities in the Indian and Chinese online travel markets and we expect this strategic relationship between two market leaders to be mutually beneficial."
"Today's announcement marks the beginning of the strategic relationship between Ctrip and MakeMyTrip. Through this transaction, Ctrip has now gained exposure to India's fast growing online travel market," said James Liang, Co-founder, Chairman, and CEO of Ctrip.