MakeMyTrip deals may be available on Flipkart soon

Two of India’s largest consumer internet companies – ecommerce giant Flipkart and MakeMyTrip, the country’s largest online travel operator – have entered into a strategic partnership that will see the former offer travel services on its platform.
 
The tie-up will see Flipkart enter the online travel segment that is projected to touch $48 billion by 2020, growing at an annual compounded rate of 11%-11.5%, and is part of the domestic online commerce giant’s larger plan of aggressively entering new segments.
 
As per the terms of the partnership, according to a source, who spoke on the condition of anonymity, as he is not authorised to speak on the developments, the tie-up between SoftBank and Tiger Global-backed Flipkart and Nasdaq-listed MakeMyTrip will see all three of the latter’s primary brands – MakeMytrip, Goibibo and redBus – available to consumers.
 
Correspondingly, all the three brands will also have access to Flipkart’s consumer base. The Bengaluru-headquartered ecommerce company has an estimated 100 million registered users. 
 
Under the terms of the partnership, domestic flights will be the first offering under the travel segment that is expected to go live in the next few days. Other travel-related segments like hotels, bus and holidays will also be a part of the offering in the coming weeks.
 
However, the commercial terms of the partnership could not be immediately ascertained. While at the time of filing the report on Wednesday evening, MakeMyTrip and Flipkart had not responded to queries from ET, both companies issued a statement on Thursday morning, confirming the tie-up. 
 
"Flipkart is one of the most exciting companies of our times and we are delighted to partner with them to catalyse the massive online travel opportunity in India, “ Deep Kalra. chief executive of MakeMyTrip Ltd, said. “This partnership will help us reach out to an even wider consumer base and further open up the online travel market in a significant way."
 
“Flipkart and MakeMyTrip have played a defining role in shaping the consumer internet ecosystem in India and bringing millions of people online," Kalyan Krishnamurthy, chief executive of Flipkart, said in the joint statement. "This strategic partnership helps us make travel booking a seamless experience for customers, even those in the farthest regions, while also furthering our goal of being a one-stop destination for all digital transactions online."
 
The latest developments come on the back of media reports that said that Flipkart was looking to independently chart a course in the online travel space.
 
The two companies have been looking to work together for some time now. Rajesh Magow, chief executive of MakeMyTrip India, rejoined the Flipkart board in September last year, after a two-year gap, as the ecommerce company looked to beef up its board.
 
Additionally, PhonePe, the digital payments platform owned by Flipkart, announcing a tie-up with MakeMyTrip-owned online bus ticket booking service redBus last month.
 
That tie-up saw PhonePe launch the redBus store on its app, as it looks to compete with Alibaba Group-backed Paytm, which also entered the travel segment last year, and has been aggressively doubling down on it.
 
Shares of MakeMyTrip, which has a market capitalisation of $3 billion, closed almost flat, at $33.05, Wednesday on Nasdaq.
 
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