The two dominant players in the world’s top two fastest growing travel markets are teaming up together.
Chinese travel booking site Ctrip has agreed to invest US$180 million in India’s biggest travel company MakeMyTrip.
Funded by convertible bonds, the agreement allows Ctrip to own up to 26.6% of MakeMyTrip’s current shares.
Without disclosing specifics, the companies said they will work closely together, likely through cross-promotion of inventory in each other’s market.
"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, MakeMyTrip group CEO.
MakeMyTrip has a market cap of about $700 million while Ctrip is valued at an estimate $10 billion.
"This 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, CEO of Ctrip in a statement.
