MakeMyTrip acquires majority stake in Savaari Car Rentals
The travel company had previously disclosed the deal in its financial results for the second quarter of FY24.
Online travel service provider has acquired a majority stake in Savaari Car Rentals Pvt Ltd, which will remain an independent entity led by its current leadership team.
The travel company had previously disclosed the deal in its financial results for the second quarter of FY2023-24. The acquisition is expected to further MakeMyTrip's growth, along with its technology and consumer insights expertise.
“All the formalities of the acquisition of the controlling stake are now complete. This acquisition marks a pivotal moment in the $3 billion-plus, yet largely unorganised, inter-city market," said Gaurav Aggarwal, Founder and CEO of Savaari Car Rentals.
"The timing of the acquisition couldn’t be better, as it coincides with the improved road infrastructure in the country and a wider acceptance among travellers to book intercity cab services online,” he added.
Founded in 2006, Savaari provides outstation one-way drops, outstation round trips, hourly local rentals, and airport transfers in over 2,000 Indian cities.
“The inter-city cab service remains largely offline, with low online penetration, fragmented supply, and a lack of standardisation in service. We have encountered similar issues in inter-city private bus transport, where we now have a leadership position through redBus. With this majority stake in Savaari, we seek to extend that leadership to adjacent segments in ground transport,” said Rajesh Magow, Co-founder and Group CEO of MakeMyTrip.
Prakash Sangam, CEO of redBus, will spearhead the initiative on behalf of the MMT group, collaborating closely with Savaari's leadership team to expand the business.
NASDAQ-listed MakeMyTrip disclosed an annual revenue growth of 25.6%, reaching $214.2 million in Q3 FY24—an increase from $170.5 million recorded in the same quarter a year ago. The surge is attributed to heightened travel demand in India during Q3 FY24 compared to the corresponding period in FY23.
Edited by Suman Singh