MakeMyTrip to Raise $2.5 Billion to Halve Trip.com’s Stake
Online travel giant MakeMyTrip (MMT) is set to raise over $2.5 billion through a combination of equity and convertible note offerings to facilitate the partial exit of Chinese investor Trip.com Group, significantly reducing Chinese shareholding in the company.
As per regulatory filings on Nasdaq, MMT will issue 1.4 crore equity shares, with pricing to be finalised, alongside convertible notes worth up to $1.25 billion. The entire proceeds from this fundraise will be used to repurchase a portion of Class B shares from Trip.com, effectively cutting the Chinese investor’s stake by more than 20 percentage points.
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Currently, Trip.com holds 45.34 percent of MakeMyTrip’s voting rights, which includes 10.7 million ordinary shares and 39.67 million Class B Series shares. The Shanghai-headquartered OTA giant had significantly increased its stake in 2019 after a strategic equity swap with Naspers, following the Ibibo–MakeMyTrip merger.
According to Entrackr estimates, even if the equity offering is priced at a 10 percent discount to the current market rate of $100.88 per share, MMT could raise $1.27 to $1.3 billion from the equity component alone. Combined with the convertible notes, the full proceeds would total approximately $2.5 billion.
This move is seen as part of a broader trend of Indian companies strategically reducing Chinese ownership due to changing geopolitical and regulatory dynamics. Several Indian startups including Paytm, Zomato, Delhivery, and BigBasket have either reduced or completely eliminated Chinese investor stakes in recent years.
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MakeMyTrip’s decision comes at a time when it is posting record earnings. In FY25, the company reported $978 million in revenue, a 25 percent year-on-year growth, and a profit of $95.2 million, driven by rising domestic travel demand and business mobility.
While Trip.com’s operational strengths in global travel remain relevant, MMT is increasingly self-reliant and deeply entrenched in the Indian market. The reduction in foreign strategic ownership is expected to enhance MMT’s regulatory flexibility and brand perception, particularly amid rising scrutiny of foreign investments from China.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
