MakeMyTrip Ltd, India’s leading online travel company, is reportedly in talks to raise ₹20,000 crore (~US$2.4 billion) through a mix of debt and equity financing. The capital is expected to support aggressive growth in new verticals and international expansion.
This funding initiative aligns with MakeMyTrip’s strategic focus following strong recent performance. In Q2 FY25, the company reported a 26.5 % year-on-year revenue increase to $211 million and a more than seven-fold jump in profit to $17.9 million
🧭 Purpose Behind the Fundraising
- Pan-India & Global Expansion
Funds could accelerate expansion in markets like MENA, where MakeMyTrip recently set Saudi Arabia as its second base - New Travel Verticals
The company is strengthening corporate travel (MyBiz), alternate accommodations, intercity buses, homestays, and activities—areas which showed robust Q3 growth - Tech & M&A Play
The influx may back feature development, acquisitions (e.g., Happay expense platform), and integration of services to build an integrated travel ecosystem
Strong Financial Momentum
- Robust Q1 & Q2 Profits: MakeMyTrip posted record gross bookings and profits—$21 million in Q1 FY25 and $17.9 million in Q2 FY25
- Diversified Revenue Mix: The corporate, hotel, and alternate accommodations segments now contribute meaningfully to revenue
- Positive Outlook: CEO Rajesh Magow projects the company will outpace industry growth by continuing innovation across services business-standard
Potential Funding Structure
Although deal specifics aren’t public yet, the ₹20,000 crore raise is expected to include:
- A mix of bank debt and corporate bonds
- Equity infusion, possibly mixed with share sales by major investor Trip.com/Ctrip
- Potential brownfield investments or strategic partnerships
What It Means for Stakeholders
- Investors: Increased confidence driven by strong financials and growth plans.
- Customers: Expanded services and better offerings in corporate travel, experiences, and global reach.
- Market Position: The raise would strengthen MakeMyTrip against peers like EaseMyTrip and Yatra, reinforcing leadership in India and plans abroad.
🔍 Key Takeaways
| Factor | Details |
|---|---|
| Target Raise | ₹20,000 crore (~US$2.4 billion) |
| Use of Funds | Expansion (domestic & MENA), new verticals, acquisitions, tech investment |
| Recent Performance | Q2 revenue +26.5 %, profit surged 7× to $17.9 M |
| Growth Focus | Corporate travel, bus/homestays, activity bookings, global markets |
🔭 What to Watch Next
- Formal announcement on fundraising structure and timeline
- Any acquisitions or partnerships unveiled alongside the raise
- Performance of newer verticals post-investment
- Impact on debt levels, share ownership, and future IPO plans
✅ Final Thoughts
If successful, MakeMyTrip’s ₹20,000 crore funding round would be one of India’s largest for a consumer tech firm. It marks a clear commitment to growing beyond its core travel booking business into a full-stack travel platform, with ambitions in global markets and diversified verticals.
