Update:Ibibo may acquire bus ticketing service RedBus at INR 800 crore

According to the latest reports, Redbus is being valued 14 times of its net revenues in FY13 taking the acquisition deal by Naspers to INR 800 crore, as earlier the amount was estimated to be $100M by ET. The deal would be for a majority stake and not for complete acquisition. Also, founders will completely exit the company post acquisition.

Naspers, a South African based leading multinational media group is in talks to acquire online bus ticketing firm Redbus for an amount of $100 million as reported by  ET.

Founded in 2006 by BITS Pilani trio, Phanindra Sama, Sudhakar Pasupunuri and Charan Padmaraju, Redbus is currently having a gross annual sale of $200 million and is estimated to have a market share of 65 percent. With this acquisition, Naspers is planning to encash the Redbus strong foothold in domestic market with 1000 operators and more than 10,000 bus routes.

Backed by Pilani soft labs, Red bus current investors include Helion Venture partners, Seedfund and Inventus capital. Till date, it has raised a total of 3 funding rounds, with latest $6.5 million in Series C.  Although, it’s still not clear whether the investors will have full or partial exit with this deal.

Redbus has already crossed 1 crore ticket sales and has reached a user base of 2 million. It has also launched a mobile app  to enable users book tickets on the go.

RedBus faces competition from many new players such as Mantis (Travelyaari), AbhiBus and SimplyBus, but it is believed that none of the other companies have the convenience or bandwidth of Redbus’ offerings that combine consumers, operators and travel agents.

Related Read:  #Fundingwire - Airline Ticket Aggregator Mystifly Secures Rs 33Cr & 10 More Updates

Naspers Indian arm MIH, holds investment in local players such as Flipkart, Goibibo, Payu.in ,Payaupaisa, Tradus and ibibo ads. Also, Naspers hold nearly 40% stake in China’s internet firm,Tencent.

The Nasper’s group’s most significant operations are located in emerging markets. This includes South Africa and the rest of Sub-Saharan Africa, China, Latin America, Central and Eastern Europe, Russia and India.