Team Startupcity

• MakeMyTrip to raise $2.5B via equity and convertible notes to reduce Trip.com’s stake.
• Chinese shareholding to drop by half, cutting Trip.com’s voting rights significantly.
•  FY25 was MakeMyTrip’s best year yet, with $978M in revenue and $95.2M profit.

India's largest online travel company, MakeMyTrip, will raise more than $2.5 billion from a mix of equity and convertible notes to allow for a partial exit for Chinese investor Trip.com Group. The effort is part of a larger plan to halve Chinese ownership in the company.

According to recent Nasdaq filings, MakeMyTrip will issue around 14 million equity shares (1.4 crore) and raise as much as $1.25 billion through convertible notes. With the stock of the company trading at $100.88 currently, analysts project that the equity tranche alone could fetch $1.27–1.3 billion even with a discount of 10%. Added to the notes, this will pay for a buyback of Class B shares worth $2.5 billion by Trip.com.

The move dramatically reduces Trip.com's existing 45.34% voting interest in MakeMyTrip, which includes 10.7 million ordinary shares and 39.67 million Class B shares. Shanghai-based Trip.com acquired the majority stake in a 2019 equity swap deal from Naspers, after Naspers had previously established a stake during the Ibibo-MakeMyTrip merger.

The move is in line with a trend within Indian technology companies to pare down Chinese investor holdings in the face of changing regulatory and geopolitical realities. Paytm, Zomato, Delhivery, and BigBasket have done the same recently in facilitating Chinese exits.

After a robust post-pandemic rebound, MakeMyTrip reported historic numbers in FY25, with revenues jumping 25% YoY to $978 million and profits reaching $95.2 million, supported by a surge in leisure and business travel.