Online travel giant MakeMyTrip has announced a major financial move—raising over $2.5 billion through the sale of shares and convertible bonds. The goal is to significantly slash the stake held by China-based Trip.com Group in the Nasdaq-listed Indian company.
This decision, revealed in company filings with the U.S. Securities and Exchange Commission (SEC), marks a notable shift in MakeMyTrip’s ownership structure. It comes at a time when Indian sentiments against Chinese investments are running high, following geopolitical tensions and growing economic nationalism.
A Strategic Move Amid Rising Nationalist Sentiments
Although MakeMyTrip has not officially stated the motive behind the stake dilution, the context is hard to ignore. The announcement follows last month’s military tensions between India and Pakistan. India has increasingly viewed nations like China and Turkey as indirect supporters of Pakistan, leading to calls for restricting business ties with them.
Additionally, the shadow of the 2020 Galwan Valley border clashes between India and China still looms large. Many Indian companies are facing pressure from investors and the public to reduce dependence on Chinese capital and partnerships.
Details of the Fund-Raise
According to SEC documents, the $2.5 billion will be raised through a combination of equity shares and convertible bonds. This strategic infusion of funds will provide MakeMyTrip with the financial flexibility to buy back shares or issue new ones to reduce foreign influence—especially from Trip.com Group, which currently holds a significant minority stake.
The move is also expected to strengthen MakeMyTrip’s balance sheet and operational autonomy.
EaseMyTrip Founder Joins the Chorus
The decision comes shortly after EaseMyTrip’s co-founder Nishant Pitti publicly criticised MakeMyTrip for allowing Chinese investment. In a subtle dig, he suggested that companies relying on capital from politically sensitive nations risk losing consumer trust in India’s current climate.
With MakeMyTrip’s new fund-raising move, it appears the company is seeking to address such criticism head-on.
A Look at Trip.com’s Stake
Trip.com Group, China’s leading travel services provider, became a major shareholder in MakeMyTrip after a share swap with South Africa’s Naspers in 2019. The deal positioned Trip.com as a strategic partner with influence over MakeMyTrip’s decision-making.
However, geopolitical shifts and shifting investor expectations seem to be forcing MakeMyTrip to re-evaluate that relationship.
India’s Tech Sector Seeks Independence
This development is not isolated. Several Indian tech companies have started limiting foreign ownership, especially from China, in critical sectors like travel, fintech, telecom, and e-commerce. The Indian government has also introduced policies requiring stricter scrutiny of investments from nations sharing a land border with India.
This fund-raise may help MakeMyTrip regain more control and reposition itself as a truly Indian company in the eyes of regulators and customers alike.
For a broader perspective, see the MakeMyTrip investor relations page and India’s FDI policies.
What This Means for the Travel Industry
The move is likely to reshape competition in India’s travel sector. By reducing foreign stakes, MakeMyTrip could gain goodwill among nationalists and policymakers. It may also unlock new funding opportunities from Indian institutional investors who were previously hesitant.
At the same time, the dilution of Trip.com’s stake could mean less technical and operational support from the Chinese partner in the future.
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