The acquisition of Indian bus booking startup, redBus by the ibibo Group (Indian Subsidiary of Naspers) has now officially been confirmed. The financial details have not been revealed yet but sources are putting the figure around $120 million. The news about the impending acquisition had been out earlier this week but there was no official confirmation from ibibo or from redBus.
The redBus acquisition shoots the ibibo Group miles ahead of other competitors in the space in terms of usage. ibibo Group also operates Goibibo, which also offers a bus ticket booking service. The combined volumes from this acquisition will make the group one of the biggest online travel players in India, according to the release.
Phanindra has released a statement about the development,
“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.”
redBus will be independent post acquisition and will continue to run parallel to Goibibo. Redbus has achieved much after having been founded in 2006 by Phanindra Sama. Currently, it aggregates 228,000 seats per day and sells 10,00,000 tickets a month. The company employs 600+ full time people. Redbus has tie-ups with a lot of bus operators across the country, who benefit from being part of the Redbus network. Redbus earns its revenue by charging commission on each successful seat booking. The company has actually managed to bring one of the most used transport mediums and generally messy sector under one platform and keep both, the operators and the consumers happy by leveraging the Internet and the mobile space to get stuff delivered.
Finally, it is an inspirational story for young and aspiring startups in the country who can learn from how Redbus grew from humble beginnings and reached its current scale.