Makemytrip.com Infused With US$ 10 Million Investment

Jyoti Koul - New Delhi

Deep Kalra About 75 million seats will be available for sale in 2005 on domestic and outbound routes and about 100,000 rooms-nights available presently are likely to double by 2009

Realising the fact that the Indian tourism industry amounts to three per cent of the country's GDP at US$ 13.6 billion and the country being ranked as the second fastest growing travel economy in the world and represents 5.6 per cent of all employment, a strategic investment of US$ 10 million (about Rs 43 crore) has been made by a leading private equity fund namely SB Asia Infrastructure Fund (SAIF) in Makemytrip.com.

Booming like never before, the Indian travel economy is expected to grow at 8.8 per cent over the next 10 years therefore offering a basketful of opportunities for investors and travellers alike.

In the last financial year, Makemytrip has earned a gross revenue of US$ 20 million and the company is targeting to record about US$ 50 million by the end of this fiscal. Makemytrip is planning to launch new products with respect to outbound and domestic travel services for leisure and business travellers.

While commenting on the investment that it has received, Deep Kalra, CEO, Makemytrip.com said, "With this investment, SAIF will have about 50 per cent stake in Makemytrip.com. However, the management control will remain with us. The investment will power Makemytrip.com's growth and acquisitions in the country.''

According to Ravi Adusumalli, general partner, SAIF, "The Indian travel industry is driven by increasing income level and increasing competition and presents a compelling opportunity for Makemytrip to capitalise on and we want to leverage its international experience to create the dominant company in what is sure to be a dynamic industry."

The acquisition is part of the company's India strategy, which envisages it becoming the largest travel player in next four years. While presenting an overview of the online travel and how it is projected to grow, Kalra informed that an increasing number of air passengers from India would be booking their tickets online within a year. "Currently, over 25 per cent of all travel in the US is booked online and it is estimated that by 2008, over 50 per cent of US travellers will move to the Internet. Back home, about 75 million seats will be available for sale in 2005 on domestic and outbound routes and about 100,000 rooms-nights available presently are likely to double by 2009. The outbound trips are estimated to cross six million in 2005 and the same is slated to grow by 15 per cent," informed Kalra.