Chinese Internet tourism service provider Ctrip.com announced that the company will invest USD180 million in Indian online tourism company MakeMyTrip by purchasing convertible bonds.
Meanwhile, MakeMyTrip will allow Ctrip to purchase a certain amount of shares on the open market, which can raise Ctrip's stake in MakeMyTrip up to 26.6% at the most. On the completion of the investment, Ctrip will have the right to name one board director of MakeMyTrip.
Deep Kalra, founder and chief executive officer of MakeMyTrip, said that they are glad to receive the investment from Ctrip, which is an important leader in the Chinese online tourism market. They believe the Indian and Chinese online tourism markets have a lot of similarities and the establishment of this strategic partnership will benefit both parties.
Liang Jianzhang, co-founder, chairman, and chief executive officer of Ctrip, said that with this move, Ctrip and MakeMyTrip can start to build a strategic relationship. With this investment, Ctrip will have a place in the fast-growing Indian online tourism market.