MakeMyTrip is set to raise over $2.5 billion in a strategic funding move that aims to significantly reduce Chinese ownership. The company plans to buy back a portion of its Class B shares held by Trip.com Group, a leading China-based OTA, as part of a partial exit plan. The fundraise includes both a primary equity issue and convertible notes, and it’s part of a broader pattern of Indian startups minimizing foreign—particularly Chinese—control amid regulatory and geopolitical shifts.
🔍 Key Fundraise Breakdown
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Equity Offering: 1.4 crore (14 million) shares — price yet to be finalized
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Convertible Notes: Up to $1.25 billion
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Total Raise Estimate:
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~$1.27–1.3 billion from equity (assuming 10% discount on $100.88 market price)
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Combined with notes, $2.5+ billion in total capital
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Use of Funds: Entirely to repurchase Class B shares from Trip.com
🎯 Strategic Objective: Reducing Chinese Ownership
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Trip.com’s Current Stake:
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10.7 million ordinary shares
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39.67 million Class B shares
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Total Voting Power: 45.34%
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Post-Buyback Impact: Chinese influence reduced by over 20%, nearly halved
💼 Why This Matters for Indian Startups
MakeMyTrip’s move mirrors a growing shift among Indian tech companies:
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Paytm cut Ant Group’s holding from 25% to just 5%
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Zomato enabled full exits for Alibaba and Fosun
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BigBasket, Delhivery, and Pratilipi followed suit with Chinese investors
These changes reflect both policy-level nudges and investor preference for greater local control.
📈 MakeMyTrip’s Strong Financial Base
The timing couldn’t be better:
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FY25 Revenue: $978 million (up 25% YoY)
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Net Profit: $95.2 million — highest to date
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Growth Drivers:
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Post-COVID travel surge
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Return of business travel
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Expanding domestic demand
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🧠 Why the Exit Makes Strategic Sense
Even with Trip.com’s global expertise:
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MakeMyTrip’s brand and scale allow for independent growth
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Future collaboration can continue on an arm’s length basis
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The move strengthens local governance and investor confidence
Looking Ahead
While Trip.com will retain a reduced minority stake, this move gives MakeMyTrip the flexibility to chart its own path. Future collaboration can continue—but likely on arm’s length terms, reducing strategic reliance while preserving optionality.
At Innovent Blog, track the biggest funding rounds, strategic exits, and ecosystem shifts across Indian startups. This move by MakeMyTrip is more than a capital transaction — it’s a signal of where India’s digital economy is headed.
👉 Stay tuned for more updates on how founders, funds, and platforms are reshaping the future.