MakeMyTrip picks up stake in HolidayIQ. Bengaluru-based HolidayIQ is into holiday planning recommendation and community engine. The deal is tipped to be at $15 million and HolidayIQ has been valued at $55 million.
This move comes after the acquisition of Mygola.com by MakeMyTrip for an undisclosed amount and as part of the deal the entire team of Mygola.com joined MakeMyTrip. MakeMyTrip also acquired Inspirock in June 2015.
HolidayIQ has secured four rounds of funding from leading PE investors like Tiger Global, Accel and Brand Capital. Funds from the latest stake sale will be used for strengthening the capabilities on mobile, content and product management.
On the other hand, MakeMyTrip has created a specialised fund called Innovation Fund, this fund mainly invests in startup companies or early stage companies in the travel technology segment. The fund made its first investment in a Bengaluru based travel technology startup called Simplotel Technologies P Ltd and it is an undisclosed amount.
However, HolidayIQ stake purchase is not done through the Innovation Fund. It is direct investment by MakeMyTrip. With this investment, both companies are scaling up hotel content and reviews for Indian customers, and provide more lucrative deals and offers to the visitors of HolidayIQ. MakeMyTrip has acquired/ invested in several travel technology startup companies.
HolidayIQ is headed by Hari Nair, co-founder and Chief Executive Officer of the company said, “Mobile is creating new unprecedented opportunities for growth and innovation. This capital gives us additional resources to expand quickly and strategically and accelerate the 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.”
MakeMyTrip’s founder and Chief Executive Officer said, “HolidayIQ operates in a very exciting space in the Indian online travel market. Its pace and appetite for innovation match ours, and we see great synergy in our focus on hotels and mobile. The opportunity to drive scale jointly is fairly significant.”
MakeMyTrip’s co-founder and CEO, India Operations Rajesh Magow, said, “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.”