Amid COVID-19, EaseMyTrip launches successful IPO
One of the most affected sectors due to the COVID-19 pandemic was the travel and tourism industry. In fact, many travel-tech startups in India faced months of no business.
For EaseMyTrip — which offers travel booking services such as flights, hotels, visa processing, etc. — this posed a challenge. Brothers and co-founders Nishant Pitti, Rikant Pitti, and Prashant Pitti, initially set out to launch the company's IPO in 2020, which didn’t happen.
But, amidst every crisis lies an opportunity. On March 8, 2021, EaseMyTrip made its stock market debut by leveraging its lean cost model and no convenience fee strategy.
According to Prashant, “We could never raise any capital, so we had to be frugal about everything we did, and being bootstrapped also meant thinking of profitability. Until December 2020, we didn’t think of an IPO. But the same month, we saw a 76 percent rise in our numbers, touching the pre-COVID levels. We have been extremely resilient because of our early bootstrapping days.”
The co-founders diluted their 25 percent stake and issued shares worth Rs 510 crore, which was oversubscribed by 159 times, putting in a demand worth Rs 44,881 crore. The company was valued at Rs 2,040 crore during the IPO.
Each share of EaseMyTrip was sold for Rs 187 at the IPO, and as of now, its shares are trading at Rs 230, generating 23 percent profit for investors within two months.
Read all about how the Indian startup ecosystem is battling the second wave of COVID-19 here.
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“Globally, some of the companies are finding it difficult to raise money in the travel sector. But at the same time, if there is one sector that will see growth once the lockdown eases, it is the travel segment.”