19 Oct 2016

Rishabh Tripathi

MakeMy Trip Merges With Ibibo- Shares Soars Up To 43%

India's oldest and largest online travel portal MakeMy Trip has merged with it's rival Ibibo in an all-stock deal. The merger has created a mega entity and Morgen Stanley has valued the entity at a whooping $1.8 billion . The merged entity will operate as MakeMy Trip.
When it comes to merger stock markets are always dwindling and are often uneasy and stocks are known to be unstable and often tend to fall due to operational difficulties in combining of two companies. But after the news of merger of Makemy Trip , its shares soared up 43% and now its valuation in public market is $1.2 billion .

Naspers and Tencent , the joint owners of Ibibo  which held 91% and 9% stake in Ibibo respectively will become the largest shareholders in make MakeMy Trip and will be issued new shares in MakeMy Trip.

MakeMy Trip was founded by Deep Kalra back in 2000. In 2010 it was listed in NASDAQ. MakeMyTrip controls an estimated 35% share of the market for online booking of hotels and flights. Ibibo, founded by Ashish Kashyap in 2007, controls about one-fifth of the hotel booking.

According to the reports Kalra will remain the group CEO and executive chairman of make my trip and Magow, co-founder of MakeMy Trip will continue to remain CEO India. Ashish Kashyap will join MakeMy Trip executive team as a co-founder and president.

Less than a year ago it looked like MakeMy Trip and Ibibo are preparing for a big battle with each other.But now MakeMy Trip has achieved the milestone that start-up dreams of and after this merger it has cemented its place in one of the most enduring and inspiring stories of Indian tech space