MMT had allotted shares to this company in August and November 2018 worth Rs 211 crore. GoIbibo and MMT will use the freshly raised funds to expand their partnerships globally.Vishal Krishna
MakeMyTrip has filed with the Registrar of Companies (RoC) that it has received Rs 103 crore from its holding entity in Mauritius SGG Holdings. MMT had allotted shares worth Rs 211 crore to this company in August and November 2018. GoIbibo and MMT will use the freshly raised funds to expand their partnerships globally.
The recent partnership with OYO is further going to increase MMT's reach in the country as the supply of hotel rooms will go up for ecommerce travel company. MMT has also launched assured hotels services to win loyal customers.
The company is an advertiser with an IPL team and is also planning to spend heavily in the Indian market going forward, although it still continues to be a loss making entity in India. Last September, the Mauritius-based parent had pumped in Rs 69 crore into the Indian arm.
Late last year, the company faced some regulatory issues with the Federation of Hotel & Restaurant Associations of India (FHRAI) who sent a letter to MakeMyTrip and Goibibo, that alleged that the companies were using "exploitative, unethical and divisive" business practices that lead to "predatory pricing and other market distortions, which has a potential to harm both hoteliers and consumers in the long term".
At the time, MakeMyTrip Co-founder and CEO Rajesh Magow said,
“There is misinformation being spread in social media about hotel bookings on MakeMyTrip and Goibibo not being honoured. This information being spread is completely baseless...We remain committed to providing our customers with the highest level of quality and service.”
According to IBEF, India is the most digitally-advanced traveller nation in terms of digital tools being used for planning, booking and experiencing a journey. The country's rising middle class and increasing disposable incomes have continued to support the growth of domestic and outbound tourism.
During 2018, foreign tourist arrivals (FTAs) in India stood at 10.56 million, achieving a growth rate of 5.20 percent year-on-year. FTAs in January 2019 stood at 1.10 million, up 5.30 percent compared to 1.05 million year-on-year.
No wonder MMT is backing it's Indian arm, consumption is on the rise in India and with it the appetite to travel is also expected to rise.