Amid COVID-19, EaseMyTrip launches successful IPO
At a time when the travel and tourism industry witnessed a tough year due to the pandemic, bootstrapped EaseMyTrip kicked off its IPO, which was oversubscribed by 159 times.
Good morning!
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.
Here are some useful tools to help you find the nearest vaccine centres in real-time.
You can also share a tribute to COVID-19 warriors, saviours, and survivors here.
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Representational image [ Image Credit: Shutterstock]
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News & Updates
- Edtech startup upGrad has acquired Impartus, a video-enabled learning solutions provider. As part of the deal, upGrad has committed over Rs 150 crore for the buyout and to invest in Impartus’ growth.
- In a blog post, Paytm Payments Bank (PPB) said that the digital financial institution emerged as the top beneficiary bank for UPI transactions for the period between February and April this year.
- The Russian Direct Investment Fund and Panacea Biotec announced the launch of the production of the Sputnik V coronavirus vaccine in India. The first batch of the vaccine will be produced at Panacea Biotec's facilities at Baddi in Himachal Pradesh.
- Amazon India has launched the COVID-19 Relief Scheme to provide financial assistance to frontline teams of associates hired through staffing agencies and other eligible employees with a COVID-19 allowance and additional hospital reimbursement.
- The Securities and Exchange Board of India (SEBI) doubled the overseas investment limit of alternative investment funds and venture capital funds to $1,500 million. The decision has been taken in consultation with the Reserve Bank of India.
Before you go, stay inspired with…
“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.”
— Sreedhar Prasad, Advisor, Analyst, ex-KPMG, and ex-Kalaari Capital
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