ndia’s largest online travel agency, MakeMyTrip, is raising over $2.5 billion through a combination of equity and convertible note offerings to enable a partial exit for China-based Trip.com Group. The move marks a significant strategic shift aimed at reducing Chinese ownership in the company amid evolving geopolitical and regulatory landscapes.
As per filings with the US Securities and Exchange Commission (SEC), MakeMyTrip has launched a primary offering of 1.4 crore equity shares, with pricing yet to be finalised, along with convertible notes worth up to $1.25 billion. The company’s stock currently trades at $100.88 on NASDAQ. Even if shares are priced at a 10% discount, MakeMyTrip is expected to raise approximately $1.27–$1.3 billion through the equity route alone. The total capital raised — including from convertible notes — will support the buyback of Class B shares held by Trip.com Group.
The planned capital raise will directly support the repurchase of Trip.com’s stake, reducing the Chinese group’s holding by nearly half. Currently, Trip.com owns 45.34% of MakeMyTrip’s voting rights, including 10.7 million ordinary shares and 39.67 million Class B Series shares. These Class B shares offer superior voting rights, making them a critical part of the restructuring.
Trip.com, headquartered in Shanghai, is a global OTA listed on both NASDAQ and the Hong Kong Stock Exchange. It began investing in MakeMyTrip in 2016 but significantly boosted its stake to 49% in 2019 through an equity swap deal with Naspers, who had become a large stakeholder following MakeMyTrip’s merger with Ibibo Group.
The buyback signals MakeMyTrip’s intention to streamline ownership and possibly align itself with current foreign direct investment (FDI) norms and India’s geopolitical stance on reducing Chinese influence in strategic sectors. This move follows a growing trend where Indian tech companies are facilitating Chinese investor exits. Earlier, Paytmreduced Ant Group’s stake from 25% to 5%, while Zomato enabled a complete exit for both Alibaba and Fosun. Startups like BigBasket, Delhivery, and Pratilipi have taken similar steps.
The decision comes on the back of a stellar FY25 for MakeMyTrip. The travel platform reported a 25% year-on-year revenue growth to $978 million, alongside a net profit of $95.2 million, driven by strong demand across leisure and business travel segments. This performance reflects a full recovery from pandemic lows, buoyed by India’s travel boom and a resurgence in outbound travel.
With Trip.com’s shareholding expected to shrink significantly post-transaction, MakeMyTrip appears poised to reposition itself with cleaner ownership, stronger financials, and greater alignment with domestic policy direction. The capital restructuring is not only a step towards shareholder realignment but also signals maturity as MakeMyTrip strengthens its footing as a global travel-tech brand with Indian roots.
