Chinese investors have developed an affinity for India’s online travel agencies.
On April 26, China’s CTrip bought a 42.5% stake in India’s largest online travel firm MakeMyTrip from South Africa’s Naspers in a share-swap deal. Along with an earlier investment, CTrip now owns about half of MakeMyTrip’s shares.
“These investors understand the growing appetite of Indian middle class to travel, people becoming more comfortable using the internet not only for browsing but for transactions as well,” Yugal Joshi, vice president of Texas-based consultancy Everest Group, said. “Moreover, the India OTA market is becoming consolidated with very few players dominating. This helps investors to scale.”
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