MakeMyTrip to Raise Over $2 Bn to Reduce Chinese Stake Amid Security Concerns
MakeMyTrip (MMT) has announced plans to raise over $2 billion to buy back equity from its largest shareholder, China-based Trip.com Group, in a strategic move aimed at reducing Chinese ownership in the company amid rising scrutiny over data and national security.
Fundraising Structure: Senior Notes and Equity Offering
To finance the buyback, MakeMyTrip will tap both debt and equity markets:
- $1.25 billion will be raised through convertible senior notes maturing in July 2030, available to qualified institutional buyers (QIBs).
- An additional $1.23 billion will come from a primary share offering of 14 million ordinary shares. Pricing will be determined at the time of the offering, but based on the current Nasdaq share price of $90.32, it could fetch up to $1.23 billion.
The company confirmed that it has entered a share repurchase agreement with Trip.com to buy back part of its Class B ordinary shares, although Trip.com will retain a minority stake post-transaction.
Political Pressure and Public Scrutiny
The move follows criticism by EaseMyTrip founder Nishant Pitti, who highlighted Trip.com’s Chinese control, warning that MMT could pose national security risks—particularly during geopolitical tensions like the recent India-Pakistan conflict.
Pitti alleged that:
- MMT’s board has significant Chinese representation (5 out of 10 directors with direct ties to China).
- There’s potential exposure of sensitive user data, including travel information of Indian soldiers.
In response, MakeMyTrip dismissed the allegations as “malicious and motivated,” asserting its corporate governance is sound and compliant with Indian laws and data privacy frameworks.
Market Position and Financial Performance
MakeMyTrip remains a dominant player in India’s online travel aggregation market:
- FY25 revenue surged 25% YoY to $978.3 million, up from $782.5 million in FY24.
- However, net profit dropped 56% YoY to $95.3 million, largely due to one-time gains reported in the previous fiscal year.
In comparison, EaseMyTrip’s revenue remained largely flat at INR 587 Cr (~$68 million) in FY25, while net profit grew modestly by 5% to INR 109 Cr (~$12.6 million).
Strategic Shift Amid Rising Nationalism and Data Sensitivity
This repurchase move reflects increasing stakeholder pressure and a broader push to “de-risk” Indian tech platforms from perceived foreign influence, especially when linked to China.
It also aligns with the government’s call for data localization and greater control over critical consumer platforms.
With this capital raise, MakeMyTrip seeks not just to reconfigure its ownership structure, but also to rebuild public and political confidence, ensuring that it retains its lead in India’s evolving digital travel ecosystem.
