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All technology teams have moved onto a common facility in Bengaluru while the data centres and call centres remain independent.On the technology side, all three brands of the combined entity have a common extranet and payment systems.“MMYT’s incremental marketing and promotion spending has consistently exceeded net revenue growth since financial year 2016.

Various teams were given responsibilities, which were then taken back, only to be given back again.

You can say in town halls that nobody will be let go but post such transactions, when only one person is required for a role, you can’t have two people doing the same.

That (reducing costs on discounts) was the entire purpose of the merger since both the companies were crazily undercutting each other,” said a senior executive at a rival company, declining to be identified.

Travel industry insiders say the newly merged entity continues to face teething problems integrating a large workforce.

“I think the objective was to reduce their discounting spends but it has only gotten worse since then.

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The kind of burn they have been doing continues to go on unabated.

Gross margins earned from the hotel and travel packages segment can range between 10% and 25%, according to analysts, compared with between 5% and 10% from air ticket bookings.

While these issues are par for the course for almost all mergers of this magnitude, some analysts have pointed out that the Make My Trip-Ibibo merger was supposed to lead to a healthier balance sheet, which, however, is yet to be reflected.

Fifteen months after Make My Trip announced its merger with smaller rival Ibibo Group, the largest ever consolidation to take place in the Indian startup ecosystem, the jury is still out on whether the landmark deal has started paying dividends for the merged entity.

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The kind of burn they have been doing continues to go on unabated.

Gross margins earned from the hotel and travel packages segment can range between 10% and 25%, according to analysts, compared with between 5% and 10% from air ticket bookings.

While these issues are par for the course for almost all mergers of this magnitude, some analysts have pointed out that the Make My Trip-Ibibo merger was supposed to lead to a healthier balance sheet, which, however, is yet to be reflected.

Fifteen months after Make My Trip announced its merger with smaller rival Ibibo Group, the largest ever consolidation to take place in the Indian startup ecosystem, the jury is still out on whether the landmark deal has started paying dividends for the merged entity.

The $1.8-billion largely stock deal saw the then newly merged travel giant grab more than 60% of the overall online travel market in India.

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The kind of burn they have been doing continues to go on unabated.Gross margins earned from the hotel and travel packages segment can range between 10% and 25%, according to analysts, compared with between 5% and 10% from air ticket bookings.While these issues are par for the course for almost all mergers of this magnitude, some analysts have pointed out that the Make My Trip-Ibibo merger was supposed to lead to a healthier balance sheet, which, however, is yet to be reflected.Fifteen months after Make My Trip announced its merger with smaller rival Ibibo Group, the largest ever consolidation to take place in the Indian startup ecosystem, the jury is still out on whether the landmark deal has started paying dividends for the merged entity.The $1.8-billion largely stock deal saw the then newly merged travel giant grab more than 60% of the overall online travel market in India.But we did not have any regretful attrition.” However, in September, Ashish Kashyap, the chief executive of Ibibo and who played a critical role in structuring the deal with Make My Trip, quit as president of the merged entity. “There have been people issues, starting from Ashish who founded Goibibo, (while) a lot of old Make My Trip people left.Both companies had large teams, so merging them has been a challenge.“Ibibo’s culture was about innovation, speed and disruption…The two were different animals,” said one industry insider, declining to be identified.“Obviously, it was his personal choice, but I think the timing would not have been that great if he had decided to leave immediately after the transaction.It happened a few months later, (when) we had covered lot of ground.” Now with the integration exercise almost complete, the combined entity has merged key functions surch as human resources, finance and legal.

.8-billion largely stock deal saw the then newly merged travel giant grab more than 60% of the overall online travel market in India.

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