MakeMyTrip to Raise Over USD 2.5 Billion, Aims to Cut Chinese Stake

Indian travel booking giant MakeMyTrip has announced a major fundraising initiative worth over USD 2.5 billion through a combination of share sales and convertible bonds. The proceeds will primarily be used to reduce the stake held by China-based Trip.com Group, the company disclosed in recent filings with the NASDAQ.

The Gurugram-based firm, listed on the NASDAQ exchange, stated that the capital raised through this offering — which includes a Concurrent Notes Offering — will be directed toward repurchasing a portion of its Class B shares currently owned by Trip.com.

This strategic move comes amidst rising calls in India to curtail business ties with firms and investors linked to China and Turkey. The sentiment has grown stronger in the aftermath of last month’s India-Pakistan military confrontation, with both China and Turkey being viewed as diplomatic allies of Pakistan.

MakeMyTrip’s decision is seen as part of a broader effort by Indian companies to reduce foreign influence in sensitive sectors and align with national interests. Trip.com Group had acquired a significant stake in MakeMyTrip in 2019 through a share-swap deal involving Naspers-backed Ibibo.

Analysts note that the repurchase could pave the way for more domestic or neutral international investors to increase their footprint in one of India’s leading travel tech companies, as the country’s travel and tourism sector witnesses a strong post-pandemic rebound.

The exact timeline for the offering and share repurchase is yet to be disclosed.