Singapore parent pumps $9.9 M into Ibibo groupSameer Ranjan
Since the beginning of the calendar year, it has infused more than Rs 228 crore ($33.2 million) into its Indian subsidiary.
Singapore-based parent of Ibibo Group that operates travel properties like Goibibo, redBus, YourBus (a vehicle tracking application), and others, pumped $9.9 million into its Indian arm, recent filings with Registrar of Companies (RoC) showed. Since the beginning of this calendar year, it has infused more than Rs 228 crore ($33.2 million) into its India subsidiary.
Post its merger, Ibibo is now a part of MakeMyTrip group that is listed on Nasdaq. The fund infusion comes at a time when group entities MakeMyTrip and Goibibo have been spending significantly on customer inducement and acquisition.
A recent filing by the company with Nasdaq, said, “Marketing and sales promotion expenses increased by 19.1 percent to $93.9 million in the quarter ended March 31, 2018 from $78.8 million in the quarter ended March 31, 2017. Marketing and sales promotion expenses primarily include significant customer inducement and acquisition programme expenses incurred to accelerate growth in our standalone hotel booking business and brand advertisement expenses. Primary drivers of this year-over-year increase was the consolidation of marketing and sales promotion expenses of the Ibibo Group acquired on January 31, 2017.”
MakeMyTrip disclosed in the filing that it posted a revenue of $157.8 million in the quarter ended March 31, 2018, an increase of 31.5 percent over revenue of $120.0 million in the corresponding period of last financial year.
MakeMyTrip’s financial and operating results for the fiscal 2018 fourth quarter and full year include the financial and operating results of ibibo Group Holdings (Singapore) Pte. Ltd. and its subsidiaries (“Ibibo Group”) which MMT acquired on January 31, 2017.
While Goibibo roped in Bollywood actor Deepika Padukone as its brand ambassador in 2017, MakeMyTrip brought in actors Alia Bhatt, Ranveer Singh and Diana Penty for its multi-TVC campaign. Goibibo also recently launched a campaign featuring Deepika Padukone and the Mumbai Indians' franchise's team members. The new promotion induced customers to download the app and keep it open during the Mumbai Indians matches and earn goCash.