Online travel operator, MakeMyTrip, has raised $330 million in a fresh round of funding, by private placement of shares and issuing fresh stock to existing investors Ctrip and Naspers, statements filed by the company on Nasdaq showed. The company will issue 4,583,334 ordinary shares in the aggregate to investors at a price of $36 per ordinary share to generate gross proceeds of $165.million.
Along with this, the company will also issue its 916,666 ordinary shares to Chinese travel company, Ctrip, and and 3666,667 Class B Shares to MIH Internet SEA Pte. Ltd, a subsidiary of internet and media group Naspers Limited, at a price of $36 per share, generating an additional $165 gross proceeds to the company. This makes the the total investment to $330 million.
The Class B shares issued to MIH will be convertible into ordinary shares of MakeMyTrip on a one-to-one basis.
Morgan Stanley India is acting as the sole placement agent for the transaction. The money raised will be used by the travel portal to finance its business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes.
Ctrip had invested $180 million in convertible bonds in January 2016. This translated to around 10% stake in the new entity.
In February, SAIF Partners exited the company after selling 11 per cent stake in the company. SAIF Partners were the first investors in the company and made $400 million on an initial investment of $25 million.
Nasper largest stakeholder
The transaction will consolidate Nasper’s position as the largest stakeholder with 35% stake in the company. MakeMyTrip now owns Goibibo, RightStay, and Redbus. The Nasper Group came on board, in January this year when Ibibo group and MakeMyTrip merged operations.
For the quarter ended December 31, 2016 (Q3 FY17), the company posted revenues of $123.2 million, an increase of 38.6% from $88.9 million in the same quarter last year. 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.