MakeMyTrip to raise over $2.5 billion to slash China-based Trip.com’s stake in company
In a bold strategic move, MakeMyTrip (MMT) is set to raise between $2.5 and $3 billion. The goal is to reduce the influence of China-based Trip.com Group, which currently holds a large voting stake in the company.
This major fundraising effort will involve two parts: a public equity offering and convertible senior notes. MakeMyTrip plans to offer 12–16 million shares and issue around $1.25 billion in bonds, with an option to raise an extra $187.5 million.
The company will use the funds to buy back Class B shares from Trip.com. These shares carry ten times the voting power of regular shares. Once canceled, this will bring Trip.com’s voting rights down from 45.3% to under 20%. As a result, MakeMyTrip will shift to a simpler, single-class shareholding structure.
Why MakeMyTrip Is Making This Move
The decision comes amid growing concerns about foreign—especially Chinese—ownership in Indian companies. Since 2020, several Indian startups have faced scrutiny for having major Chinese investors.
Trip.com became MakeMyTrip’s biggest shareholder after a deal with South Africa’s Naspers Group in 2019. However, the geopolitical landscape has changed. India–China tensions have created pressure on companies to reduce Chinese stakes.
MakeMyTrip’s leadership now wants to bring its governance back into Indian and global investor hands. This aligns with India’s broader policy direction and public sentiment.
Governance Changes Ahead
Trip.com currently holds five board seats. After this transaction, that number will fall to just two. The change will give MakeMyTrip’s leadership more control and freedom in decision-making.
This realignment will also help boost investor confidence, especially among global and Indian institutions that prefer clearer, more localized governance.
Record Fundraising in Indian Tech
This fundraising effort will be the largest ever by an Indian tech company, surpassing past records from firms like Paytm and Zomato.
MakeMyTrip’s strong financials back the timing of this move. In the last fiscal year, the company posted:
- $9.8 billion in gross bookings
- $978 million in revenue
- $95 million in net profit
These figures show that India’s travel market has bounced back after the pandemic, with MakeMyTrip leading the recovery.
Deal Structure and Investor Appeal
MakeMyTrip is splitting the fundraising into two parts:
- Equity Offering: It will issue 12–16 million shares. At current market prices, this could raise over $1.3 billion.
- Convertible Notes: Investors can later convert these bonds into shares. This approach allows the company to raise money now without immediately increasing the total number of shares.
The deal also includes a greenshoe option. If used, this could boost the total raise above $3 billion.
By removing Class B shares with extra voting rights, the company ensures equal rights for all shareholders. This step improves transparency and governance.
Impact on India’s Startup Landscape
MakeMyTrip’s move is part of a larger trend in India’s startup ecosystem. In recent years, firms like Paytm, Ola, and Zomato have worked to cut Chinese ownership. They are doing this through fundraising, buybacks, or secondary sales.
Indian investors, regulators, and the public are pushing companies to reduce foreign dependencies. This helps protect national interests and builds long-term stability.
MakeMyTrip’s decision sets a strong example. It shows that Indian firms can take control of their futures—even if it means raising large sums and restructuring ownership.
What This Means Going Forward
MakeMyTrip’s fundraising plan sends a clear message. The company wants to grow as an independent, globally trusted travel platform, free from strategic influence by foreign players.
By reducing Trip.com’s voting power and reshaping its board, MakeMyTrip is taking back control. This step supports better decision-making, clearer accountability, and greater alignment with investor expectations.
The fundraising also positions MakeMyTrip for future growth. With a healthier balance sheet and more control, the company can expand faster across India and other markets.
Final Thoughts
MakeMyTrip is doing more than just raising capital. It is redefining its identity and ownership in a changing global landscape.
By cutting Trip.com’s stake and boosting local control, the company is preparing for its next growth phase. This move could inspire other Indian tech companies to follow suit and reclaim their independence.
In a time of economic nationalism and strategic shifts, MakeMyTrip’s decision is timely, smart, and bold. It represents a major step forward—not just for the company, but for India’s entire digital economy.
