MakeMyTrip evaluating India IPO as part of long-term growth strategy

Online travel platform MakeMyTrip announced on Monday (March 16) that it is considering a potential listing of its India business. The evaluation comes as the company completes an internal restructuring aimed at consolidating its main brands operating in the Indian market and is looking to support long-term growth and strengthen its leadership in the underpenetrated Indian travel and tourism market.

“As part of its long‑term growth objectives, the company is evaluating a potential listing of MakeMyTrip India in India, which could provide an additional avenue to access capital, including from domestic institutional and retail investors as well as enable it to provide India‑listed equity as potential consideration for growth initiatives.

MakeMyTrip mulls India listing

The company believes that an India listing can be a catalyst to further boost the MakeMyTrip brand in its core market, strengthen its leadership in India and support longer-term growth,” the company said in its March 16 filing with the US Securities and Exchange Commission.

The company has completed an internal restructuring, merging RedBus India into MakeMyTrip India, consolidating key brands under a single entity. This restructuring is part of MakeMyTrip’s broader strategy to expand its presence in the Indian travel market.

Completion of acquisition of a majority stake in Flamingo

MakeMyTrip also announced the successful completion of its acquisition of a majority stake in Flamingo Transworld, a prominent provider of regional group holiday packages operating out of India. Flamingo has established a robust presence in states such as Gujarat, Maharashtra, Rajasthan, and Madhya Pradesh.

It also announced a strategic minority investment in Atlys, a leading visa processing platform, with the collaboration set to enhance the travel experience for MakeMyTrip customers by providing a more efficient visa application process through Atlys.

The upcoming IPO could bolster the company’s position in its largest market and also allow the company to offer India-listed equity as a potential form of consideration for its growth initiatives.

MakeMyTrip has established itself as a leader in the travel industry, offering a comprehensive range of services including air ticketing, hotel bookings, holiday packages, alternative accommodations, and bus services.

Currently, the platform boasts impressive metrics, with over 87 million lifetime retail customers, 77,000 small and medium enterprises (SMEs) and corporate clients, a staggering 549 million app downloads, 32.5 million hotel room nights sold, and 104.6 million bus tickets sold.

Any potential listing remains subject to market conditions, regulatory approvals, and customary corporate considerations.