MakeMyTrip has announced plans to raise over $2 billion to reduce the stake held by its Chinese investor, Trip.com Group, following public concerns raised by EaseMyTrip’s founder Nishant Pitti. The capital will be raised through $1.25 billion in convertible senior notes for institutional buyers and a $1.23 billion primary share offering based on current Nasdaq stock prices. The company has already signed a share repurchase agreement with Trip.com, which currently holds a 45.95% stake in MakeMyTrip. Despite reducing its share, Trip.com will remain the largest minority shareholder. The move follows national security concerns expressed by Pitti, who claimed the Chinese-backed board could potentially compromise user data. MakeMyTrip dismissed these allegations as baseless, emphasizing its compliance with Indian laws and data privacy standards. Financially, MakeMyTrip’s revenue rose 25% to $978.3 million in FY25, though net profit fell 56% due to the absence of one-time gains from the previous year. Meanwhile, EaseMyTrip reported nearly flat revenues and a modest 5% rise in net profit.
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MakeMyTrip Eyes $2B+ Funding to Dilute Chinese Ownership
MakeMyTrip has announced plans to raise over $2 billion to reduce the stake held by its Chinese investor, Trip.com Group, following public concerns raised by EaseMyTrip’s founder Nishant Pitti. The capital will be raised through $1.25 billion in convertible senior notes for institutional buyers and a $1.23 billion primary share offering based on current Nasdaq stock prices. The company has already signed a share repurchase agreement with Trip.com, which currently holds a 45.95% stake in MakeMyTrip. Despite reducing its share, Trip.com will remain the largest minority shareholder. The move follows national security concerns expressed by Pitti, who claimed the Chinese-backed board could potentially compromise user data. MakeMyTrip dismissed these allegations as baseless, emphasizing its compliance with Indian laws and data privacy standards. Financially, MakeMyTrip’s revenue rose 25% to $978.3 million in FY25, though net profit fell 56% due to the absence of one-time gains from the previous year. Meanwhile, EaseMyTrip reported nearly flat revenues and a modest 5% rise in net profit.
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
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