Abstract We report the discovery and multicolour (VRIW) photometry of the rare explosive star MASTER OT J004207.99+405501.1 – a luminous red nova – in the Andromeda galaxy M31N2015–01a. We use our original light curve acquired with identical MASTER Global Robotic Net telescopes in one photometric system: VRI during the first 30 d and W (unfiltered) during 70 d. Also, we added published multicolour photometry data to estimate the mass and energy of the ejected shell and we discuss the likely formation scenarios of outbursts of this type. We propose an interpretation of the explosion that is consistent with an evolutionary scenario where the merging of stellar components or the disruption of the common envelope of a close binary can explain some luminous red novae. Radiative hydrodynamic simulations of a luminous red nova were carried out in extended parameter space to fit its light curves. We find that the multicolour passband light curves of the luminous red nova are consistent with an initial common envelope radius of 10 R⊙, a merger mass of 3 M⊙ and an explosion energy of 3 × 1048 erg. As a result, the phenomenon of novae consists of two classes: classical nuclear novae and more rare events (red novae) connected with the loss of compact common envelopes.