MakeMyTrip and Ibibo, two of the biggest online travel platforms in India, have announced a merger that will combine the two businesses under the former's brand. The combined entity, said to have a valuation of $1.8 billion (approximately Rs. 12,010 crore), and will include Ibibo's ride-sharing service Ryde, and MakeMyTrip's homestay platform Rightstay.

Ibibo will be merged into MakeMyTrip, and the Naspers-Tencent combine that backs Ibibo will be the single largest shareholder in the combined entity. The transaction, which is expected to close by December 2016 is subject to approval by regulators. This might be a potential stumbling block as the two companies are arguably the biggest in the space in India.

In terms of organisation, MakeMyTrip's leadership won't change much - MakeMyTrip founder Deep Kalra remains the Group CEO and Executive Chairman, while Rajesh Magow remains CEO India. Ibibo's CEO, Ashish Kashyap, who founded the company in 2007, will join MakeMyTrip as a co-founder and President.