MakeMyTrip (India), that contributes about 85% revenues of its parent company MakeMyTrip, has posted a net loss of R351 crore for the financial year 2015-16, down from a net profit of R5.8 crore for the previous year, as per the company’s RoC filings.
The India subsidiary of MakeMyTrip has posted the loss despite a revenue surge of 22% to R1,919 crore in FY16 from R1,573 crore in FY15. Expenses also increased sharply from R1,579 crore during FY15 to R2,276 crore in FY16. Founded by Deep Kalra, MakeMyTrip commenced
its operations in 2000 and in the first five years following the inception, it focused on the non-resident Indian market in the United States,
servicing mainly their need for United States-India inbound air tickets. It started its Indian business with the launch of its Indian portal in September 2005.
According to the RoC filing, the parent company MakeMyTrip has pumped in R66 crore into the Indian subsidiary in December.
This is the second tranche of capital infusion made by the parent MakeMyTrip into its Indian subsidiary in FY17. Earlier in September, the parent infused funds of R67 crore.
With the recent merger of MakeMyTrip and Ibibo, the online travel agency (OTA) space has all three large brands Yatra, MakeMytrip and GoIbibo in the publicly listed space, thus providing an exit route for investors.
Yatra was recently listed on Nasdaq. For long, the online travel agency segment needed some consolidation as air travel and hotel bookings had become commoditised and OTA players were on a cash burning spree by offering deep discounts to their customers.
Written by Sameer Ranjan Bakshi.