The online bus ticketing service, redBus has been finally acquired by ibiboGroup, the domestic joint venture of China’s Tencent and South Africa’s Naspers, confirms Ashish Kashyap to iamwire. However, the deal amount is still undisclosed and is still estimated to be 800 crores as previously reported.
Phanindra Sama, Co-Founder & CEO of redBus.in said, “We are excited to be a part of ibiboGroup. Naspers’ strong belief in internet industry and operating experience in multiple countries will help redBus grow into a renowned brand in the coming years.”
According to Ashish Kashyap, CEO of ibiboGroup, their key motivations to acquire redBus are :
1) Strong management and founding team that will continue to run redBus as an independent operation.
2) Significant leadership and market share of redBus in the online bus ticketing space.
3) This marriage leapfrogs us to become an even stronger online travel player in India and gives us significant combined scale in terms of daily transaction volumes and GMV.
4) We see this as an exciting market opportunity. Online penetration of the bus market is only 5.7% compared to 28% for air travel, suggesting headroom for rapid future growth”
Phanindra Sama will continue with his role as the CEO of redBus as stated by Ashish.
ibibo will keep redBus running independently and also plans to bring redBus into its existing travel portfolio which includes a B2C travel aggregator, Goibibo.com, and TravelBoutiqueOnline, a B2B travel agency platform. The redBus services may also be expanded to other markets such as China, as per the speculations.
redBus.in, founded by Phanindra Sama in 2006, aggregates 228,000 seats per day, sells more than a million tickets a month and has 600+ full time employees. The core business model of redBus is commission revenues on successful transactions.
The Indian online bus ticketing market is among the few niche markets which are still untapped and ibibo CEO find it as an opportunity to grow in the market first. Also, with the increasing internet penetration in the country and India being considered as one of the largest markets in smartphone sales, this acquisition can prove much beneficial for the acquirers.