Exclusive: MakeMyTrip Gets INR 73.5 Cr From Mauritius Entity As Virus Pinches OTAs

In the wake of the ongoing slowdown in the aviation and tourism industry, Gurugram-headquartered online travel company MakeMyTrip has raised INR 73.5 Cr in two tranches from Mauritius-based entity — MakeMyTrip Limited.

According to the ministry of corporate affairs (MCA) filings accessed by Inc42, MMT has raised INR 37 Cr on March 16 while the parent company infused INR 36.5 Cr on March 9

MakeMyTrip issued 21,81,461 shares to the company at INR 340 per share with a nominal price of INR 10.

MakeMyTrip had reported an adjusted operating loss of $11.2 Mn in Q3 2020, down from $19.3 Mn in the previous quarter in the same fiscal. Meanwhile, the company’s revenue increased to $146.9 Mn, from $118 Mn in the previous quarter.

For MakeMyTrip, the impact is quite visible from the downfall of the share prices. From $29.95 on February 12, MakeMyTrip‘s share price declined to $10.8 on March 18. The situation is quite similar for MakeMyTrip competitor Yatra as well. Yatra’s share price fell from $3.79 on February 14 to $0.91 on March 18.

MakeMyTrip’s Revival Plan

To start with, MakeMyTrip’s Kalra and CEO Rajesh Magow shared a revival plan with the company’s employees. Some of the measures include reducing variable costs such as advertising, sales promotions and payment gateway costs, along with optimising IT infrastructure and expenses relating to the functioning of our offices and other establishments.