[Funding Alert] MakeMyTrip gets Rs 73.5 cr from its Mauritius entity amid coronavirus crisis
Gurugram-based online travel firm MakeMyTrip has received infusion of Rs 73.5 crore from its Mauritius-based entity (MakeMyTrip Limited, Mauritius) in two tranches, according to Ministry of Corporate Affairs filings of the company. Both the filings are reported for the month of March.
The development comes amid coronavirus outbreak, where in travel and hospitality are the worst affected sectors. Recently, InfoEdge-backed OTA announced that its top executives Deep Kalra and Rajesh Magow have decided to draw "zero salary" from April 2020, while the rest of its leadership team will take a reduction of around 50 percent in their compensation in fighting coronavirus. MakeMyTrip also said that it plans to undertake multiple "tough measures" to keep overall expenses at a minimum amid the outbreak. The group is reviewing operating costs and plans to undertake multiple tough measures to keep overall expenses at a minimum.
Being an online company, the majority of the costs are variable and the situation demands that it takes a hard look at all the fixed costs including people costs, the company said. It added that there has been a sharp drop in bookings with spiralling cancellations and the latest restrictions on domestic air/rail/bus travel has brought the industry to a virtual standstill, and that the group will continue to sharply reduce variable costs like advertising, sales promotions and payment gateway costs, along with optimising IT infrastructure and expenses relating to the functioning of its offices and other establishments.
Most recently, MakeMyTrip launched 'Stays for Saviours' initiative to provide temporary accommodations at special rates for the medical frontline force fighting coronavirus. It will enable medical practitioners to discover and book from over 900 hotel properties across 200 cities in India on MakeMyTrip. Many prominent hotel chains like The Park Hotels, IHG, Ginger Hotels, TreeHouse, Lemon Tree Hotels, Oyo Hotels, Keys Group, Sarovar Hotels, Royal Orchid, Citrus Group, Intellistay, Justa, Golden Tulip Hotels Chain, Lyvue group and hundreds of independent hotels have opened their doors at special rates for India's healthcare workers.
(Edited by Javed Gaihlot)