MakeMyTrip, the online travel service provider, has successfully acquired a majority stake in Savaari Car Rentals Pvt Ltd, maintaining its autonomy under the current leadership. Gaurav Aggarwal, Founder and CEO of Savaari Car Rentals, expressed, “This acquisition marks a pivotal moment in the $3 billion-plus, yet largely unorganised, inter-city market.”
The completion of formalities in acquiring the controlling stake is expected to significantly contribute to MakeMyTrip’s growth, leveraging its technology and consumer insights expertise. The strategic move coincides with improved road infrastructure and increased acceptance of online intercity cab services, enhancing the timing of the acquisition.
Savaari, established in 2006, offers outstation one-way drops, round trips, local rentals, and airport transfers in over 2,000 Indian cities. Rajesh Magow, Co-founder and Group CEO of MakeMyTrip, highlighted their aim to address challenges in the predominantly offline inter-city cab service. He stated, “With this majority stake in Savaari, we seek to extend that leadership to adjacent segments in ground transport.”
Prakash Sangam, CEO of redBus under the MMT group, will lead the initiative, collaborating closely with Savaari’s leadership team to expand the business. The acquisition aligns with MakeMyTrip’s strategy to extend its leadership position in ground transport segments.
MakeMyTrip reported an annual revenue growth of 25.6%, reaching $214.2 million in Q3 FY24.