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.