MakeMyTrip to invest $15 million in HolidayIQ
MakeMyTrip announced signing of agreement for the acquisition of a minority stake in HolidayIQ. MakeMyTrip will pick up around 28% stake in HolidayIQ for $15 million.
Delhi, July 22, 2015: MakeMyTrip, India’s leading online travel company (the “Company”), announced signing of agreement for the acquisition of a minority stake in HolidayIQ, a popular Indian travel community and holidays-planning recommendation engine. The company will pick up around 28% stake in HolidayIQ for $15 million. The transaction is scheduled to complete in July 2015. This strategic investment will enable both companies to rapidly scale up hotel content and reviews for Indian customers, and provide more compelling offerings to their visitors.
Speaking on the investment, Deep Kalra, Founder and Group CEO, MakeMyTrip.com said, “HolidayIQ operates in a very exciting space in the Indian online travel market. Their pace and appetite for innovation matches ours, and we see great synergy in our focus on Hotels and Mobile. The opportunity to drive scale jointly is fairly significant.”
According to HolidayIQ, the funds will mainly be used to further strengthen its capabilities on Content, Mobile and Product. HolidayIQ had raised series A before from Tiger Global and Accel Partners. The focus at HolidayIQ is to become the “authentic voice of Indian travellers, by encouraging all Indian travellers to share reviews & express opinion on all their travel”. Currently, HolidayIQ has over a million holiday reviews from Indian travellers which it expects to increase over the next two years.
Said Hari Nair, Founder & CEO of HolidayIQ – ‘Disruption is a way of life at HolidayIQ and today we power millions of travellers every month in making smarter travel decisions based on the reviews and insights from other Indian travellers. Mobile is creating new unprecedented opportunities for growth and innovation. This capital gives us additional resources to expand quickly and strategically and accelerate pace of product innovation. We look forward to working closely with MMT in getting a much larger number of Indian travellers to participate in the creation of Indian traveller opinion’.
Rajesh Magow, Co-Founder and CEO-India, MakeMyTrip.com shared, “This tie-up will power our hotel-growth strategy, and also provide immense value to Indian travellers in the form of user generated and curated trip-planning content. We also expect to rapidly scale our reviews and recommendation engine as an outcome of this investment.”
Consumer behavior and preferences are rapidly evolving in the travel sector and HolidayIQ has been clued in to the pulse of this evolution, releasing many interesting offerings especially in the mobile space such as offline guides for 1300 Indian destinations, India’s first mobile only holidays marketplace and reviews for journey options.
HolidayIQ’s mobile app has consistently witnessed high customer traction, with a high user rating of 4.3 on 5 on Google Play Store.