MakeMyTrip to raise $2.5 Bn to halve Chinese investor Trip.com’s stake

Online travel aggregator MakeMyTrip is planning to raise approximately $2.5 billion in a strategic move aimed at significantly reducing the shareholding of its largest Chinese investor, Trip.com. This massive fundraising effort will likely involve a combination of equity and other financial instruments. The primary goal is to dilute the stake held by the Chinese entity, a move that could be driven by geopolitical considerations and a desire to present a more India-centric ownership structure, especially if the company is considering a future listing in India. This initiative will also provide the company with a substantial war chest to invest in technology, expand its service offerings in areas like corporate travel and fintech, and fend off competition in the highly competitive online travel market. This reflects a major strategic pivot by the company to strengthen its financial and ownership structure.