Indian Travel Giant MakeMyTrip Launches Mega Fundraise to Slash Trip.com’s Control

Bengaluru, June 18, 2025 – MakeMyTrip, India’s leading online travel agency, has unveiled a massive capital-raising plan exceeding $2.5 billion, designed to significantly reduce the influence of Chinese travel giant Trip.com Group in the company. The initiative signals a strategic shift in MakeMyTrip’s ownership and a broader trend among Indian startups to distance themselves from Chinese investors amid evolving geopolitical and regulatory concerns.

This landmark move is not only a financial operation but also a powerful declaration of the company’s future vision, independence, and national alignment.

Objective: Reducing Trip.com’s Control

MakeMyTrip’s move is centered around a single key objective — reducing Trip.com’s voting power from nearly 45 percent to below 20 percent. Trip.com, a major Chinese online travel firm, has held a significant stake and voting control in MakeMyTrip since 2019. While it has not exercised overt operational control, its large stake has been a point of concern in the Indian market, where growing tensions with China have brought scrutiny over foreign investments.

The current plan will enable MakeMyTrip to repurchase a major portion of Trip.com’s Class B shares, which carry higher voting rights. Once the transaction is complete, Trip.com will remain a minority shareholder, but without significant voting power or decision-making influence.

The Fundraising Plan

To finance the buyback, MakeMyTrip is executing a two-pronged fundraising strategy:

1. Public Equity Offering

MakeMyTrip plans to issue millions of new ordinary shares on the Nasdaq stock exchange. This public offering is expected to raise over $1.2 to $1.5 billion, depending on market conditions and investor demand. This step will not only bring fresh capital but will also broaden the company’s shareholder base and dilute Trip.com’s stake.

2. Convertible Notes

In addition to the equity sale, the company will issue zero-coupon convertible senior notes due in 2030. These instruments are expected to raise another $1.25 billion, with an option to increase that amount depending on investor interest. These notes will allow investors to convert their debt holdings into equity at a later date, typically at a premium, offering a flexible financing tool.

Together, these fundraising instruments will generate between $2.5 and $2.8 billion, providing enough financial muscle for the share repurchase and further business expansion.

Strategic Timing and National Implications

This move comes at a time when several Indian startups and unicorns are actively working to reduce or eliminate Chinese investment from their cap tables. Over the past few years, Indian regulators have tightened scrutiny of Chinese capital, particularly in sensitive sectors like fintech, telecommunications, and e-commerce.

For MakeMyTrip, the reduction of Chinese ownership is a strategic necessity. The company is keen to strengthen its Indian identity, align itself with local data protection norms, and prepare for long-term expansion in the domestic and international travel space without potential political complications.

The company emphasized its commitment to India, stating it operates with a fully independent Indian leadership team, with all data and services localized within the country’s legal framework. This position resonates well with policymakers, investors, and customers alike.

Market Response and Shareholder Impact

The announcement triggered mixed reactions in the financial markets. While some investors applauded the company’s strategic clarity and independence push, others expressed concerns about short-term dilution of value due to the large equity offering.

The share price saw initial volatility following the news, as markets adjusted to the implications of a large capital raise. However, many analysts believe that over the medium to long term, this move will be accretive to shareholder value, allowing the company to grow without external strategic interference.

Trip.com’s decision to cooperate with the stake reduction, rather than resisting it, also points to a mutual understanding that MakeMyTrip’s future lies in deeper alignment with Indian and global investors rather than any single strategic partner.

A Trend Among Indian Startups

MakeMyTrip’s initiative is not occurring in isolation. Several prominent Indian startups and tech companies have taken steps over the past two years to reduce their reliance on Chinese capital. In sectors such as food delivery, e-commerce, and logistics, Chinese backers have exited or significantly diluted their positions amid changing policy landscapes and investor sentiment.

This trend reflects a broader strategic repositioning across the Indian startup ecosystem. Investors are increasingly favoring companies that can demonstrate self-reliance, localized governance, and compliance with Indian data sovereignty laws.

Governance Changes Ahead

As part of the restructuring, MakeMyTrip will also implement changes in its board composition. Currently, Trip.com holds several board seats owing to its large shareholding. Post-transaction, Trip.com’s representation will be reduced, and new independent directors are expected to be nominated.

The company’s co-founders and key Indian promoters will retain strategic oversight, ensuring continuity in leadership and execution of long-term plans. This restructuring will allow MakeMyTrip to operate with greater flexibility and autonomy, especially in navigating regulatory and market changes.

Operational Strength and Future Outlook

Despite macroeconomic uncertainties, MakeMyTrip has posted strong growth in the past year. With travel demand surging post-pandemic, the company has seen record bookings across domestic flights, international holidays, and hotel reservations. Its recent quarterly results reflected both revenue and profit growth, underscoring operational strength.

The infusion of fresh capital will allow MakeMyTrip to:

• Accelerate investment in technology and customer experience;

• Expand into new domestic and regional travel segments;

• Strengthen its offline distribution and partnerships;

• Launch new verticals in travel insurance, loyalty programs, and mobility services.

With Chinese influence now waning, the company can also pursue strategic collaborations and funding from new geographies, including the Middle East, Europe, and North America, without constraints or conflict-of-interest concerns.

 An Inflection Point

MakeMyTrip’s decision to raise over $2.5 billion to reduce Chinese ownership is a bold and calculated move — one that positions it as a truly independent, Indian-rooted company with global ambitions. The scale of the fundraising reflects investor trust in the brand and management, while the buyback underscores a maturing Indian startup ecosystem that is now capable of reclaiming control from early-stage foreign backers.

While challenges around market response, dilution, and execution remain, the long-term benefits of strategic clarity and autonomy are likely to outweigh any short-term headwinds. With this transition, MakeMyTrip not only reshapes its own future but also sets a powerful precedent for other Indian tech giants to reclaim their narrative and governance.