MakeMyTrip’s Rights Issue Values Company at $3.8B
Online travel aggregator MakeMyTrip’s Nasdaq-listed parent has infused additional funds of around $18.85 million (Rs 128 Cr) through a rights issue in the tour and travels portal and aggregator, valuing the Gurugram-based company at around $3.8 billion (Rs 26,000 Cr).
“While the air ticketing business has moved online in a big way, various other travel segments like hotels and holidays etc are still very under penetrated. We are investing in these in a big way. Over the last two years, we have been significantly investing in marketing and promotion. A large amount of this funding would be for the same purpose,” Mohit Kabra, CFO at MakeMyTrip, said.
As per the documents filed with the RoC, a resolution passed by the board of directors of MakeMyTrip India in February 2018 gave the nod for the allotment of 3,23,649 equity shares at an issue price of $14.74 (Rs 1,000) to its holding company MakeMyTrip Limited Mauritius on a rights basis. After the latest allotment, the local unit had issued a total of 26,63,82, 246 fully subscribed shares.
The latest development comes just two days before MakeMyTrip will report its fourth-quarter results. In the last quarter ended December 2017, MakeMyTrip Limited had reported a loss of $45.3 million compared to a profit of $16.6 million in the quarter ended December, 2016, due to increased expenses following MakeMyTrip’s merger with Ibibo Group.
Last month, Ibibo Group raised a funding of $9.83 million (Rs 65 Cr) from its Singapore-based parent company Ibibo Group Holdings.
In April, MakeMyTrip partnered with Flipkart wherein in the eCommerce company will offer travel services of MakeMyTrip, Goibibo, and redBus on its platform.
Paytm is also on its way to becoming India’s largest online travel booking platform. Registering a growth of 3x as compared to FY17, Paytm has sold over 38 Mn tickets in FY ‘18 alone, and is aiming 2x growth in ticketing volumes by end of FY ‘19 – making it the dominant player in the online travel booking space.
