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MakeMyTrip, India's largest online travel portal, on Thursday announced acquisition of 28 per cent stake in travel review and meta search website HolidayIQ for $15 million (Rs 95 crore). The deal values Holiday IQ at around Rs 340 crore.
MakeMyTrip aims to strengthen its hotel and tour package business following this investment while Holiday IQ plans to use the funds to grow its capabilities on content, mobile and product. Earlier Holiday IQ had raised series A funding form Tiger Global and Accel Partners.
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The transaction is scheduled to complete in July 2015. This investment will enable both companies to rapidly scale up hotel content and reviews for Indian customers, and provide more compelling offerings to their visitors, the companies announced on Wednesday.
HolidayIQ has about a million holiday reviews from Indian travellers which it expects to increase over the next two years.
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"This capital gives us additional resources to expand quickly and strategically and accelerate pace of product innovation,” said Hari Nair, founder and chief executive of HolidayIQ, .
“This acquisition fits in our strategy to grow our hotels and package business. We have made significant progress in the segment which contributed to about 45 per cent of our revenue in FY14-15 from 15 per cent four years ago. We see that user generated content is important factor for consumer decision making. We will work together to grow the user content and leverage it to grow our business,'' MakeMyTrip's co-founder and chief executive officer (India) Rajesh Magow stated.
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“HolidayIQ is the only major Indian online travel brand with tie-ups to offline agencies for holiday and activity bookings through referrals. With holidays and packages being a crucial to MakeMyTrip's growth, we may see the two brands further develop an online to offline sales channel as well,” said Chetan Kapoor, research analyst, Phocuswright, a travel search firm. MakeMyTrip had earlier invested in meta search site ixigo. In order to scale its hotels and tours business it has also acquired companies in Thailand, Singapore and Europe.
It has also made a series of investments and acquisitions of hotel booking and destination management companies in Thailand, Singapore and Europe. Earlier this year it acquired travel planning website Mygola and picked up 18 per cent stake in travel planning site Inspirock.
MakeMyTrip aims to strengthen its hotel and tour package business following this investment while Holiday IQ plans to use the funds to grow its capabilities on content, mobile and product. Earlier Holiday IQ had raised series A funding form Tiger Global and Accel Partners.
ALSO READ: Many startups plan to list; final norms being notified: Sinha
The transaction is scheduled to complete in July 2015. This investment will enable both companies to rapidly scale up hotel content and reviews for Indian customers, and provide more compelling offerings to their visitors, the companies announced on Wednesday.
HolidayIQ has about a million holiday reviews from Indian travellers which it expects to increase over the next two years.
ALSO READ: Startups driving demand for senior professionals: study
"This capital gives us additional resources to expand quickly and strategically and accelerate pace of product innovation,” said Hari Nair, founder and chief executive of HolidayIQ, .
“This acquisition fits in our strategy to grow our hotels and package business. We have made significant progress in the segment which contributed to about 45 per cent of our revenue in FY14-15 from 15 per cent four years ago. We see that user generated content is important factor for consumer decision making. We will work together to grow the user content and leverage it to grow our business,'' MakeMyTrip's co-founder and chief executive officer (India) Rajesh Magow stated.
ALSO READ: MakeMyTrip acquires travel guide startup Mygola
“HolidayIQ is the only major Indian online travel brand with tie-ups to offline agencies for holiday and activity bookings through referrals. With holidays and packages being a crucial to MakeMyTrip's growth, we may see the two brands further develop an online to offline sales channel as well,” said Chetan Kapoor, research analyst, Phocuswright, a travel search firm. MakeMyTrip had earlier invested in meta search site ixigo. In order to scale its hotels and tours business it has also acquired companies in Thailand, Singapore and Europe.
It has also made a series of investments and acquisitions of hotel booking and destination management companies in Thailand, Singapore and Europe. Earlier this year it acquired travel planning website Mygola and picked up 18 per cent stake in travel planning site Inspirock.
