Ctrip has taken convertible bonds for the amount in MakeMyTrip for now and holds the option of owning up to 26.6% in the Indian company which is also listed on the NAsdaq. Ctrip will also get a seat on the MakeMyTrip board.
“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 group CEO at MakeMyTrip.
“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,” James Liang, co-founder, chairman and CEO of Ctrip, said in a statement.
India is increasingly becoming an attractive market for Chinese tech companies at a time when economic uncertainties at home are rising while the Indian market continues to grow with a larger number of people gaining access to Internet.
Musafir Namah Bureau