MakeMyTrip Plans to Raise $3 Billion to Lower Chinese Ownership

Bengaluru Company Sets Ambitious Financial Goal

MakeMyTrip has revealed plans to raise funds. They will do this through a public equity offering and private convertible notes. The aim is to buy back some Class B shares from Trip.com Group, a Shanghai-based travel agency.

Important Points About the Fundraising

• Total Value: More than $3 billion, based on MakeMyTrip’s recent share price of $100.88.
• Effect on Ownership: This could lower Trip.com’s stake in MakeMyTrip from about 45% to around 20%.

Public Equity Offering Details

• Shares for Sale: 14 million ordinary shares.
• Extra Option: Underwriters can buy up to an additional 2.1 million shares within 13 days.
• Pricing: Will be determined at the time of the offering.

Convertible Notes Information

• Total Amount: $1.25 billion.
• Extra Option: Initial buyers can purchase up to an additional $187.5 million within 13 days of issuance.
• Conditions: Initial conversion rate and offering price are still to be finalized.

How the Funds Will Be Used

MakeMyTrip intends to use all the raised funds to buy back some of its Class B shares from Trip.com. The buyback price will be linked to the net price of the equity offering. This price will be adjusted for underwriting discounts and commissions. The buyback will be conducted under a share repurchase agreement signed on June 16, 2025.

MakeMyTrip Reports Record Financial Year

MakeMyTrip has announced a record financial year with significant growth in various sectors.

Financial Achievements

• Total Booking Value: $9.8 billion for FY25, a nearly 26% increase from the previous year.
• Adjusted Operating Profit: Increased by 35% to $167 million.

Factors Driving Growth

• Customer Growth: Driven by both new and returning customers.
• Market Expansion: Increasing presence in smaller Indian cities, with tier II and III markets contributing a growing share of new users.

Growth in International Travel

International travel continues to be a major area of growth for MakeMyTrip.

International Travel Expansion

• Air-Ticketing Revenue: Increased by more than 33%.
• Hotel Bookings: Grew by over 65%.
• Total Revenue: International business made up 25% of MakeMyTrip’s total revenue, up from 22% the previous year.

Non-Air Travel and Religious Tourism

• Accommodation Options: Expanded to over 89,000 across 2,000 Indian cities.
• Hotel Inventory: 30% year-on-year increase in hotel inventory from smaller towns.
• Religious Tourism: Bookings in religious tourism hubs increased by over 95% year-on-year, driven by demand for large-scale events like the Mahakumbh in Prayagraj.

Financial Status and Background

MakeMyTrip finished the fiscal year with $750 million in cash and equivalents. The company used $21.5 million for share buybacks last quarter.

Past Investments

• First Investment: MakeMyTrip first raised $180 million from Trip.com, then known as Ctrip, in 2016.
• Increased Ownership: In 2019, Trip.com increased its stake in MakeMyTrip to about 49% from 10% through a share-swap deal. This involved acquiring a 42% stake previously held by South Africa’s Naspers, which was MakeMyTrip’s largest shareholder.
• Deal Details: As part of the agreement, Trip.com issued shares worth $1.3 billion to Naspers. At the time, this was the largest investment by a Chinese internet company in an Indian firm, surpassing Alibaba Group’s nearly $1.2 billion investment in Paytm and its e-commerce unit Paytm Mall.