India’s largest Travel portal startup MakeMyTrip (MMT) has raised new funding of whopping $330 Million (Rs 2,110 Crore) in a fresh round of funding. The funding round was led by existing investors from South African technology group Naspers, Chinese travel firm Ctrip.com and other investors.
With the merger of ibibo Group, MakeMyTrip has now created one of the country’s largest travel groups providing a one stop shop for Indian travelers through brands like goibibo, redBus, Ryde and Rightstay which together processed 34.1 million transactions during the fiscal year 2016.
As per a statement filed with Nasdaq, MakeMyTrip will issue 3.6 Million Class B Shares to MIH Internet SEA Pte. Ltd, a subsidiary of multinational internet and media group Naspers Limited, at a price of $36 per share, giving it proceeds of $132 million.
MakeMyTrip released a statement quoting, “The company expects the closing of placement and the transactions with Ctrip and MIH to occur on or around 5 May 2017. Proceeds from the transactions will be used to fund business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes.”
According to an investor presentation by MakeMyTrip in April, the firm’s air ticketing transactions grew 28% in 2015-16 and tours and hotel bookings by 126% the same year. Net revenue in the air ticketing business grew 14% year-on-year; that in the tours and hotels business rose 45%.
Rajesh Magow, CEO, MakeMyTrip, said: ” We will deploy the new funds in strengthening our portfolio of international hotels and flights as well as alternative budget and luxury accommodation. Our main focus will be on increasing the contribution from hotels from 50% at present to 70% by 2020. There is a tremendous headroom for growth in the hotel category because online penetration is just 15% at present and the market is fragmented. Hotels also offer higher margins.”
For the quarter ended December 31, 2016 (Q3 FY17), the company posted revenues of $123.2 million, an increase of 38.6% from $88.9 million in the same quarter last year. Net profit stood at $16.6 million compared to the net loss of $19.5 million in the same quarter. This was due to one-time finance income of $28.52 million because of the merger. Read more about Indian Startup Ecosystem.