India’s leading online travel aggregator (OTA), MakeMyTrip, is set to raise over $2.5 billion in a significant financial move aimed at buying back shares from Chinese firm Trip.com Group, effectively cutting its Chinese shareholding by more than 20%.
The capital raise will be executed through a combination of equity and convertible note offerings, according to regulatory filings submitted to Nasdaq.
Capital Raise Breakdown
MakeMyTrip will issue:
- 1.4 crore (14 million) equity shares via a primary public offering, with the final offer price still under negotiation.
- Convertible notes worth up to $1.25 billion.
At MakeMyTrip’s current stock price of $100.88, analysts estimate that—even with a conservative 10% discount—the equity issue alone could raise between $1.27–1.3 billion. When combined with the proceeds from the convertible notes, the total funding will cross $2.5 billion, facilitating the repurchase of a major portion of Class B shares held by Trip.com Group Limited.
Strategic Chinese Exit in Focus
Trip.com currently holds 45.34% of MakeMyTrip’s voting rights, composed of:
- 10.7 million ordinary shares
- 39.67 million Class B Series shares
This buyback would significantly reduce Trip.com’s ownership, possibly by over 20%, aligning with a growing trend among Indian startups and public companies to minimize Chinese investor influence amid shifting geopolitical and regulatory frameworks.
The Trip.com–MakeMyTrip Timeline
- 2016: Trip.com began investing in MakeMyTrip.
- 2019: Its stake ballooned to nearly 49% following a strategic equity swap with Naspers, post the Ibibo-MakeMyTrip merger.
- Over the years, Trip.com’s position has been more of a financial investment, with MakeMyTrip operating independently.
The company is now signaling a clear pivot towards more localized ownership, despite the potential global synergies offered by Trip.com.
Strong Financials Post-Covid
MakeMyTrip has staged an impressive comeback in the post-pandemic era. In FY25, the company reported:
- $978 million in total revenue (25% YoY growth)
- $95.2 million in net profit
The resurgence in revenge travel, coupled with increased business and domestic mobility, played a pivotal role in MakeMyTrip’s record-breaking year.
Aligning with a Broader Indian Trend
MakeMyTrip joins the ranks of several Indian tech and consumer platforms that have facilitated exits for Chinese investors, including:
- Paytm – Reduced Ant Group’s stake from 25% to 5%
- Zomato – Full exit for Alibaba and Fosun
- BigBasket, Delhivery, and Pratilipi – Strategic exits for Chinese backers
These moves are part of an ongoing recalibration of ownership in response to national security concerns, changing FDI norms, and a desire to maintain autonomy in strategic sectors.
Final Thoughts
By initiating this substantial buyback, MakeMyTrip is not just altering its cap table—it’s repositioning itself for the next phase of growth, more aligned with Indian ownership and independent strategic decision-making.
While Trip.com will still hold a minority stake, MakeMyTrip’s leadership, brand strength, and market position now allow it to operate without leaning on a global strategic partner. This deal may mark a new era of self-reliance and long-term investor confidence in India’s digital travel sector.