India's biggest OTA MakeMyTrip has just got a whole lot bigger after announcing that it is merging with Ibibo Group.
A statement said that the pair have "agreed to pursue a transaction that will combine the two businesses under MakeMyTrip, creating one of the leading travel groups in India that provides a one-stop shop for all Indian travellers and serves as a critical partner for travel industry suppliers."
Ibibo Group picked up $250 million in funding earlier this year in a round led by its majority shareholder Naspers, a South African-listed global tech firm.
Founder and CEO of Ibibo Group, Ashish Kashyap, will join the executive team.
China's internet giant Tencent was also involved in Ibibo Group's $250 million fundraising, while MakeMyTrip picked up $180 million from China's biggest OTA Ctrip a month earlier.
The statement explained that Naspers and Tencent, which currently own 91% and 9% respectively of Ibibo Group, will end up as the biggest shareholders in MakeMyTrip with a 40% stake in the combined business. Meanwhile, Ctrip will end up with a 10% stake in the new business.