Indian software companies like Flipkart, Makemytrip, InMobi inching close to $1 bn valuations

Several Indian software product companies now command or are close to commanding valuations of $1 billion, a sign that the software products space is coming of age in a country whose strength in technology has so long been in services. Online travel company Makemytrip, which listed on the Nasdaq last year, had a valuation $1.13 billion at close of trade on Monday. Mobile ad network InMobi, which closed a $200 million funding in September, is close to touching a billion dollar valuation. Bankers say that online retailer Flipkart, which is reportedly in talks with General Atlantic and Carlyle to raise about $150- $200 million in funding, is valued at close to $1 billion. Sharad Sharma, co-chair of the Nasscom Product Forum, said there are other product companies that could touch the $1 billion mark in the next couple of years. Nasscom is holding a product conclave in Bangalore on November 9-10. "Every year I expect at least one product company to hit the $1 billion valuation mark. Those like Zoho and Druva Software are in line to become billion dollar companies," he said. He said that some of the successful product start-ups are now setting templates for others to follow, just like what TCS did for IT services companies in the 1990s. The lower cost of establishing businesses, thanks to cheap online marketing platforms and technologies is helping product

MakeMyTrip acquires S'pore-based travel firm

New Delhi: MakeMyTrip.com (MMT) has acquired a 79 per cent stake in Singapore-based travel agency Luxury Tours & Travels Pte Ltd (LTT) for $3 million.

MMT will invest another $0.75 mn in the company, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT.

Further, MakeMyTrip will acquire from the existing shareholders their remaining shares in LTT, in three tranches over a three-year period ending June 2014. The payment under each such tranche will be made in cash, based on valuations linked to LTT’s profitability.

This deal will enable MakeMyTrip to strengthen its presence in Hong Kong, Thailand and Malaysia.

Luxury Tours & Travel Pte Ltd is engaged in the business of providing hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore. It has tie-ups with over 100 hotels in Singapore, and around 25 in Southeast Asia.

Founded in 2000 by Deep Kalra, MakeMyTrip has 24x7 customer support and offices in 20 cities across India and two international offices, in New York and San Francisco. The company has private equity investors such as SAIF Partners, Helion Venture Partners and Sierra Ventures

Last year, in February, MMT acquired bus ticketing company Ticketvala.com and also raised $70-mn through an Initial Public Offer in the US.