Travel website operator MakeMyTrip has said it will buy rival ibibo Group to create the biggest player in the fast-growing flight, hotel and bus bookings market in the country.
According to media reports, the all-stock deal values the combined company at $1.5 billion.
The deal will add popular online ticketing websites such as, goibibo.com and redbus.com, to MakeMyTrip's portfolio, which owns the flagship brand and the alternate accommodation site Rightstay.
South Africa-based Naspers is the majority owner of ibibo, with a 91 per cent stake, with the rest being owned by China's Tencent Holdings. Their combined stake is valued at about $600 million, according to reports.
MakeMyTrip said in certain sections of the media that the ibibo deal would help "unlock meaningful synergies”.
Reports suggest that the online travel market in India is estimated to be about $10 billion in terms of gross booking value.
Naspers and Tencent will own 40 per cent of MakeMyTrip after the deal closes by the end of December. Additionally, China's biggest online travel service provider Ctrip.com International will have about 10 per cent stake in the new company.
Ctrip.com had said in January that it would invest $180 million in MakeMyTrip via convertible bonds.
MakeMyTrip founder Deep Kalra will continue to be the executive chairman and chief executive of the new company.