Wednesday, March 3, 2021

Featured News

China’s Ctrip in talks to join India’s Zomato’s; Will invest $ 400 million

China is in talks to collaborate its Ctrip with India’s Zomato as part of an investment round worth $400 million. Ctrip, China’s largest travel-booking site, is in talks to join the Gurgaon-based Zomato by investing up to $400 million, according to the officials. The Nasdaq-listed Ctrip is expected to pump around $100 million into online restaurant discovery and food delivery platform Zomato, valuing at $1.8-2 billion, according to reports.

Ctrip will be joined by Zomato’s existing investor Ant Financial, which is affiliated to Alibaba, and a couple of backers, the sources said earlier. Ctrip hasn’t been among the most active Chinese strategies in India, with a sole stake in online travel agency MakeMyTrip. If the deal with Zomato goes well, it will be significant as the first such venture outside of tour services for Ctrip, which has a market capitalisation of over $20 billion.
“The discussions with Ctrip are in the last leg, with only the final amount yet to be decided. It is likely to be around $100 million. While the investment is purely financial, the two companies may explore synergies, which will be more strategic in nature going forward,” a person privy to the discussions said on the condition of anonymity as the deal isn’t official. Another source said the transaction should close in two weeks.
Ctrip, which took over Scottish travel site Skyscanner for $1.7 billion two years ago, also owns Tours4Fun, travel research site and Trip by Skyscanner. It’s ranked among the top four online travel agencies globally along with Expedia, TripAdvisor and The Priceline group.
For Zomato, getting one of the biggest strategics in the online travel sector on board will be important as it attempts to grow aggressively in foreign markets.
Zomato is fighting a bitter battle in its home market, with Swiggy, which is also in talks to rack up new funding at upwards of $2 billion in valuation. Both the firms are hotly contending locally with investor money flowing in excess over the past year after a few previous years of steady sentiments around the food-delivery business.
In fiscal 2018, Zomato had a wealth of $74 million. In the previous fiscal, the revenue was $51 million with a reported loss of $54 million.
Zomato is still No. 2 behind Swiggy in the food delivery space, but the gap is not wide. These players have almost doubled the payout of delivery boys, which is very critical for fulfilling the last-mile delivery. Their fight is going to get more intense as they look to hit new order volume numbers and raise more cash from investors.”

Featured News

As India’s Drone Industry Takes Wing, Turkey Emerges As A ‘UAV Superpower’

At a time when India has started investing in military drone technology, Turkey has taken another leap forward by designing its first artificial intelligence...

PAF Official Explains Why Pakistan Could Not Intercept Indian Mirage 2000 Jets During Balakot Bombings

On February 26, 2019, the Indian Air Force's Mirage 2000 jets crossed the Line of Control (LoC), releasing five Israeli-made Spice 2000 bombs 15...

US Army’s Latest Microwave Weapon ‘THOR’ Can Thwart Enemy Swarm-Drone Attacks

The US Army will carry out field-testing of a new microwave weapon called THOR, designed to thwart enemy swarm-drone attacks, in the next few...

Why F-15EX Is A Better Option Than F-35 Stealth Jets For The Indian Air Force?

As the US is offering F-15EX jets to the Indian Air Force, many experts have suggested that that the Boeing F-15EX jets could be...

How Alert Netizens Deciphered NASA’s Secret Message On Mars Rover Parachute

US space agency NASA’s secret message on the parachute of its Perseverance rover was decoded by 'internet sleuths' within hours of its landing on...