Indian online travel company MakeMyTrip Inc. is raising funds worth $330 million (which approximates to Rs 2,116 crore) from South African investor group Naspers, Chinese travel group Ctrip.com among others. This transaction is likely to be completed this Friday.
MakeMyTrip (MMT) obtains $132 million from Naspers by allowing 3.66 million class B shares at $36 apiece. And from Chinese travel agency, MMT mobilizes $33 million by issuing 916,666 ordinary shares at the same price. The Class B shares will be convertible into the ordinary shares.
MMT also raises $165 million from an undisclosed investor. The company said that it will use this resources for business expansion, technology and product development, strategic investments, marketing and promotions and to meet working capital.
Ctrip which previously made investments in MMT worth $180 million, gave itself a stake of 26.6% in the latter’s outstanding shares.
MakeMyTrip’s net revenue jumped 81% in the quarter through December 2016 to $76.5 million.
Gurgaon-headquartered MMT has been providing online travel services which include flight ticketing, domestic and international holiday packages, hotel reservations and rail and bus ticketing. Rightstay.com and redbus.in are its brands.
Currently, MakeMyTrip is facing intense competition from its rivals like Oyo Rooms, as well as international firms like Airbnb and Booking.com who are rapidly increasing in the country.