MakeMyTrip Plans $3 Billion Fundraising to Reduce Chinese Stake
MakeMyTrip has initiated a significant capital raise, consisting of a public equity offering and a private convertible note issuance, aimed at repurchasing a portion of its Class B shares from Trip.com Group, a major travel agency based in Shanghai, China. With the company’s shares closing at $100.88, the total proceeds from these transactions are expected to exceed $3 billion. This move could potentially reduce Trip.com’s stake in MakeMyTrip from approximately 45% to around 20%, contingent upon the full utilization of the proceeds for the buyback.
Details of the Capital Raise
MakeMyTrip is set to offer 14 million ordinary shares in a registered public offering, with underwriters granted a 13-day option to acquire an additional 2.1 million shares. The pricing for this equity offering will be determined at the time of the offering. In addition to the public offering, the company plans to convert senior notes amounting to $1.25 billion, with an option for initial purchasers to buy up to an additional $187.5 million within 13 days of issuance. The specific terms, including the initial conversion rate and offering price, are still under negotiation.
The proceeds from both the public equity offering and the convertible note issuance will be directed towards repurchasing Class B shares from Trip.com. The repurchase price will be linked to the net price of the equity offering, adjusted for underwriting discounts and commissions. This buyback initiative is part of a share repurchase agreement that was signed on June 16, 2025.
Financial Performance and Growth
This capital raise follows a record financial year for MakeMyTrip, which reported a gross booking value of $9.8 billion for FY25, marking a nearly 26% increase year-on-year. The adjusted operating profit also saw a significant rise of 35%, reaching $167 million. The growth was attributed to both new and returning customers, with management highlighting an increasing presence in smaller Indian cities. Notably, tier II and III markets have contributed to a growing share of user additions.
International travel has emerged as a crucial area for expansion for MakeMyTrip. In FY25, the company experienced a more than 33% increase in international air-ticketing revenue, while international hotel bookings surged over 65%. This segment now constitutes 25% of MakeMyTrip’s overall revenue, up from 22% the previous year. The company also reported robust growth in non-air verticals, with its accommodation supply expanding to over 89,000 options across 2,000 Indian cities.
Strategic Moves and Historical Context
MakeMyTrip’s decision to repurchase shares from Trip.com is part of a broader strategy to strengthen its market position. The company initially raised $180 million from Trip.com, then known as Ctrip, in 2016. In 2019, Trip.com increased its stake in MakeMyTrip from 10% to approximately 49% through a share-swap transaction, acquiring a 42% stake previously held by South Africa’s Naspers. This transaction was notable as it represented the largest investment by a Chinese internet company in an Indian firm at that time, surpassing Alibaba Group’s investment in Paytm.
As MakeMyTrip continues to navigate the competitive landscape of online travel, the upcoming capital raise and share repurchase are expected to play a pivotal role in its future growth and operational strategy. The company ended the fiscal year with $750 million in cash and equivalents, having deployed $21.5 million towards share buybacks in the last quarter, indicating a proactive approach to managing its financial resources.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
