Leader in Indian Online Travel agency business, MakeMyTrip.com (MMT) has acquired a 79 per cent stake in Singapore-based travel agency Luxury Tours & Travels Pte Ltd (LTT) for $3 million.
MMT will invest another $0.75 mn in the company, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT.
Further, MakeMyTrip will acquire from the existing shareholders their remaining shares in LTT, in three tranches over a three-year period ending June 2014. The payment under each such tranche will be made in cash, based on valuations linked to LTT’s profitability.
This deal will enable MakeMyTrip to strengthen its presence in Hong Kong, Thailand and Malaysia.
Luxury Tours & Travel Pte Ltd is engaged in the business of providing hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore. It has tie-ups with over 100 hotels in Singapore, and around 25 in Southeast Asia.
Founded in 2000 by Deep Kalra, MakeMyTrip has 24×7 customer support and offices in 20 cities across India and two international offices, in New York and San Francisco. The company has private equity investors such as SAIF Partners, Helion Venture Partners and Sierra Ventures
Last year, in February, MMT acquired bus ticketing company Ticketvala.com and also raised $70-mn through an Initial Public Offer in the US.