MakeMyTrip Says an India Listing Still on the Agenda

A listing in India, where the market is now more receptive to e-commerce platforms, is still on the agenda for MakeMyTrip, even as the online travel agency said it is not looking at any fundraising immediately.

The company’s balance sheets boast of a good amount of cash and cash equivalents, including free cash, Rajesh Magow, group CEO of MakeMyTrip, said on an earnings call this week.

“Even if we were to set aside certain amounts for the convertible bonds that we had to raise two years ago, we’re sitting on a healthy cash balance of close to $250 million,” Magow said.

The Indian online travel agency got listed in the U.S. on Nasdaq in 2010. Deep Kalra, founder and chairman of MakeMyTrip, had hinted before, in September, about a possible India listing.

A close competitor of MakeMyTrip in the Indian online travel market, Yatra is also looking to go public sometime this year.

With a goal of raising up to $100 million, Yatra filed for a potential initial public offering with the Indian regulatory body Securities and Exchange Board of India in March last year.

It secured the clearance in November, which allows the company to launch the initial public offering (IPO) at any point within a 12-month window.

Yatra too is publicly listed on the Nasdaq in New York since December 2016.

EaseMyTrip that claims to be the second largest online travel agency in India also went public in 2021. Ixigo, another Indian online travel company, has received the regulatory nod for a $200 million IPO and then there’s Oyo that’s still keen on an Indian IPO by this year.

From an overall investor value creation point, Magow said the company would keep an eye on tapping into the Indian capital market at some point in time.

“I think India will be a more preferred market than tapping into the U.S. market once again,” Magow said at the earnings call.

Highest-Ever Adjusted Operating Profit

Increased domestic travel demand buoyed by the festival and holiday season pushed MakeMyTrip out of the red with the company reporting its highest-ever adjusted operating profit of $19.7 million and quarterly gross bookings at $1.7 billion for the quarter ending December 31.

Even as the online travel company continues to watch the Covid situation closely and is mindful of global inflation and other macro challenges, MakeMyTrip believes that supply restoration, aided by rationalization of airfares and easing of visa processes could help international travel recover to pre-pandemic levels soon.

For international outbound travel MakeMyTrip said it has been witnessing a steady recovery for short-haul destinations and hoped that by 2023 travel to Europe and long-haul destinations would also return to pre-pandemic levels.

“While we saw some slowdown in international travel bookings brought about by the Covid scare when China opened, overall, we have been witnessing good traction,” Magow said.

Reinforcing MakeMyTrip’s position as a travel superapp, Magow while reporting the third quarter earnings, said, “Strong growth across air, hotels and bus bookings reaffirms our position as a trusted travel superapp in India.”

The online travel agency generated revenue of $170.5 million in the third quarter of the financial year, an increase of 48.3 percent over a revenue of $115 million for the same period last year.

Its profit for the period was $200,000 as compared to a loss of $9 million during the same quarter last year.

“The trends suggest that travelers are back on all travel segments. Leisure, business, pilgrimage and corporate events will continue to drive the growth in the coming years as well,” said Magow.