Leading Chinese travel company Crip has invested $180 million into MakeMyTrip. Ctrip will invest this amount through convertible bonds. 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 own up to 26.6% of MakeMyTrip’s outstanding shares.
“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.”, said Deep Kalra, Founder and CEO of MakeMyTrip.
MakeMyTrip will use this investment on further strengthening its leading market share in the Indian online travel market by improving its mobile offerings, given the high smartphone penetration that India is currently witnessing.
MakeMyTrip’s lucrative hotel booking sector has been under threat from upstart budget booking startups Oyo Rooms and Zo Rooms. Late last year, MakeMyTrip, along with a clutch of other established hotel aggregators, had delisted these startups from its platform. It had in turn launched its own budget booking brand Value+.