Well it is official now, with ibiboGroup announcing that it has executed a binding agreement to acquire redBus for an undisclosed amount. Our sources had said that the deal was worth Rs 800 crore ($138 million).
ibiboGroup has said that redBus.in will continue to run independently and operate as a separate business and the founders and management team will continue to run the business.
ibibo also says the transaction will expand its existing travel assets Goibibo.com and TravelBoutiqueOnline.
The deal will make the combined entity one of the largest online travel players in India.
redBus.in was founded by Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri in 2006 and currently 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 but redBus had also launched an advertising platform for bus operators.
In one the biggest deal for the online bus ticket aggregator it had brought the Karnataka State Road Transport (KSRTC) inventory on to its site in early May this year. It already had tie up with 3 other state owned Road Transport Corporations – Rajasthan RTC, Goa RTC & Bihar RTC before that.
Last August redBus.in announced a strategic partnership with Expedia to power the bus ticket booking functionality on expedia.co.in.
redBus also launched a Virtual Bus Stops feature which let users see all the bus stops with their GPS location on a map and also offered full 180 degree panoramic view besides photos from multiple angles of boarding points.
In 2011, the company, had raised $6.5 million in a series C round from Helion Venture Partners, SeedFund and Inventus Capital Partners. Earlier in 2009, redBus had raised a Series A round from Inventus Capital.