wordpress blog stats
Connect with us

Hi, what are you looking for?

MakeMyTrip and Ibibo close merger; Revenue is up 38.6% to $123.2 million

Online travel agencies MakeMyTrip and the Ibibo Group completed the merger of the two companies and the parent group of the Ibibo  Group (Naspers and Tencent) contributed a working capital of $82.8 million in cash to the new entity.

The merged entity will include the MakeMyTrip, goibibo, redBus, Ryde and Rightstay brands. These entities combined processed 34.1 million transactions during the fiscal year 2016.

Here’s how the transaction completed:

– MakeMyTrip has issued 38.97 million class B shares to the parent group.
– The newly formed entity also purchased over 413,000 new ordinary shares of MakeMyTrip at $21.19 per share for $8.75 million.
– In total, MakeMyTrip will have 91,186,205 issued and outstanding voting shares. This includes 38,971,539 Class B shares and 413,035 ordinary shares held by the parent group.
-Chinese online travel agency Ctrip will hold 9,857,028 ordinary shares. Ctrip had invested $180 million in convertible bonds  in January 2016. This translated to around 10% stake in the new entity.
– Others who will own a stake in the company include founders Rajesh Magow and Deep Kalra, SAIF Partners

What’s missing:  The Economic Times points out that the Ibibo Group’s 14% stake in Naspers-owned payments company PayU is not in the merged entity.



For the quarter ended December 31, 2016 (Q3 FY17), MakeMyTrip posted revenues of of $123.2 million, an increase of 38.6% from $88.9 million in the same quarter last year.

– Revenue from hotels and packages segment stood at $82.18 million, an increase of 18.5% from $69.6 million in the same quarter last year.
– Air-ticketing revenues stood at $38.22 million, an increase of 116.69% from $17.72 million in Q3 FY2016. This was due to an incremental revenue of $9.2 million based on refund rights by customers and lower provisions for canceled tickets.
– Other revenue increased to $2.9 million a rise of 81.24% from $1.6 million in the quarter ended December 31, 2015.
– Net profit stood at $16.6 million compared to the net loss of $19.5 million in the same quarter. This was due to one-time finance income of $28.52 million because of the merger. Other finance costs included tax expenses, merger and acquisitions expenses.

Operational numbers:

Transactions for hotels and packages: 1.51 million up 75.58% from 0.86 million in the same quarter last year.
Transactions for air ticketing: 2.32 million up from 30.34% from 1.78 million in Q3 Fy2017.
Gross bookings for hotels and packages: 182.57 million up from 149.97 million in the same quarter last year.
Gross bookings for air ticketing: 378.17 million an increase from 312.16 million.

“Air ticketing transactions and gross bookings growth in the third quarter of fiscal year 2017 was largely driven by the expansion of the travel market in India due to increased domestic travel from lower airfares, increased seat capacity in the air travel market and the expansion of the Indian economy”, MakeMyTrip said.

Download: Financials 


You May Also Like


Nazara, an India based gaming and sports media company announced that its operating revenues have increased 84 percent YoY to Rs 454.2 crore. The...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ