MakeMy Trip raises $330 million capital from existing investors

MakeMy Trip, India’s largest online travel portal, has raised fresh capital of $330 million in a mix of private placement of shares and from its existing investors CTrip and Naspers. Under this plan, the company will issue 3.6 million Class B Shares to MIH Internet SEA Pte. Ltd, a subsidiary of multinational internet and media group Naspers Limited at a price of $36 per share, totaling to $132 million. It will issue 916,666 ordinary shares to Chinese travel operator Ctrip.com International at a price of $36 per share, mobilizing proceeds of about $33 million. Additionally, he company is undertaking a private placement of its shares to raise an additional $165 million. The fresh capital is expected to be used for numerous activities such as business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes.

The firm has unveiled aggressive plans in the hotels and packages segment to consolidate its leadership in the segment. Rajesh Magow, CEO MakeMy Trip, said that “We are going to leverage the distribution strength that we have as a combined entity, and come up with a little variant of the model that we have in the budget segment. We will go hammer and tongs after this segment”.