PTI New Delhi Last Updated: June 21, 2013 | 23:09 IST
RedBus.in founders Phanindra Sama (left) and Charan Padmaraju
E-commerce firm ibiboGroup on Friday said it will acquire Bangalore-based online bus ticketing firm redBus.in for an undisclosed amount.
ibiboGroup and Pilani Soft Labs Pvt Ltd, owner of redBus.in have executed a binding agreement for the acquisition, the company said in a statement.
"This transaction will expand and diversify Ibibo Group's existing travel assets: Goibibo.com (a B2C travel aggregator) and TravelBoutiqueOnline (a B2B travel agency platform)," the statement added.
redBus.in sells more than a million tickets a month and has over 600 full time employees.
Commenting on the development, ibiboGroup CEO Ashish Kashyap said: "This gives us significant combined scale in terms of daily transaction volumes...We see this as an exciting market opportunity. Online penetration of the bus market is only 5.7 per cent compared to 28 per cent for air travel, suggesting headroom for rapid future growth."
He further said India now has a network of good roads, which is increasing further. The number of buses would increase as people are opting for bus travel due to costly air travel and long wait-listed railway tickets, said Kashyap.
Pilani Soft Labs was founded in 2006 by 3 BITS-Pilani graduates - Phanindra Sama, Charan Padmaraju and S Pasupunuri, which own three products - redBus, BOSS and SeatSeller - serving the fragmented bus industry in India.
All travel entities of ibiboGroup, including redBus.in will continue to run independently and operate as separate businesses to drive deep focus, it said, adding, the founders and management teams of redBus.in would continue in their respective positions in the company.
IbiboGroup is owned by a holding company MIH Ltd, which is jointly owned by South Africa's media house Naspers and China's internet firm Tencen.