Travel firm MakeMyTrip today said it would, along with its largest share holder SAIF Partners, pick up 76.6% stake for $18.5 million in Le Travenues Technology, which operates online travel search engine www.Ixigo.Com.
MakeMyTrip will pick up 19.9% stake in Le Travenues for $4.8 million, private equity firm SAIF Partners will invest $13.7 million for 56.7% in the company, MakeMyTrip said in a statement.
"We expect to complete this share acquisition in August 2011. We believe this investment has synergies with and benefits our online travel business," the company said.
The share purchase agreement with Gurgaon-based Le Travenues Technology was entered into on July 4, 2011.
Ixigo.Com is a global search engine which aggregates travel information for over 100 websites. The portal enables users to search directly across multiple airlines, hotels, buses, trains and online travel agencies on a real-time basis.
Commenting on the deal iXiGO.Com Co-Founder Aloke Bajpai, said: "PE firm BAF Spectrum which was the seed investor has exited the firm. And going ahead the three promoters of Ixigo will continue to control the business."
He said, the travel portal gets over a million visitors every month and enables transactions worth $4 million.
Ixigo.Com was launched in 2007 and is promoted by Aloke Bajpai, Rajnish Kumar and Dharmendra Yashovardhan.
In May this year, MakeMyTrip had also acquired 79% equity stake in Singapore-based Luxury Tours & Travel Pte Ltd for $3 million.
Luxury Tours & Travel (LTT) provides hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore and the region.
"We plan to invest approximately $0.8 million in one or more tranches until June 2012 for the subscription of new equity shares to be issued by LTT. Accordingly, in June 2011, we invested approximately $0.4 million pending the allotment of shares," MakeMyTrip said.
MakeMyTrip today posted a decline in its net profit for the quarter ended June 30, 2011 at $0.75 million, compared to $1.3 million in the first quarter of last fiscal.
The Nasdaq listed firm's revenue increased 54.3% at $52 million during the three months ended June 30, 2011, compared to $33.7 million in the first quarter of last fiscal.
"MakeMyTrip was able to maintain strong growth in the quarter despite uncertain global and domestic economic conditions," MakeMyTrip Chairman and CEO Deep Kalra said.
The company's strategic marketing investment during the quarter has resulted in very robust growth in transactions and expansion of margins in our hotels and packages business, he added.
