MakeMyTrip (MMT) is reportedly looking to raise USD 330 Mn from South African Internet and media conglomerate Naspers and Ctrip and other investors. Per recent SEC filings of the company, the investment will be raised via share sale. The transaction is expected to close by the end of this week.

Yesterday, the company announced that it has entered into definitive share purchase agreements for the placement of its ordinary shares to investors. Under the terms of the agreement, the company will issue 4,583,334 ordinary shares in the aggregate to investors at a price of USD 36 per ordinary share. Apart from this, the company has also entered into a share purchase agreement with Ctrip and MIH Internet SEA Pte. Ltd, a subsidiary of Naspers.

A company statement said,

“MakeMyTrip separately entered into share purchase agreements with (i) Ctrip.com International, Ltd. (“Ctrip”) for the issuance of its ordinary shares to Ctrip and (ii) MIH Internet SEA Pte. Ltd., a subsidiary of Naspers Limited (“MIH”), for issuance of the Company’s Class B convertible ordinary shares to MIH, which transactions will generate an additional $165 Mn of gross proceeds to the Company. The foregoing transactions with the Investors, Ctrip and MIH are expected to general total gross proceeds of $330 Mn.”

Under the company’s share purchase agreement with Ctrip, MMT will issue 916,666 ordinary shares to Ctrip, at a price of USD 36 per ordinary share. On the other hand, it will issue 3,666,667 Class B Shares to MIH at a price of USD 36 per share. The Class B Shares issued to MIH will be convertible into ordinary shares of the company on a one-to-one basis.

 

According to the same statement,

“Proceeds from the transactions will be used to fund business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes.”

Currently, as per another company statement, MakeMyTrip has access to over 40,000 hotels, 13,500 alternative accommodation properties in India and more than 240,000 hotels and properties outside India, Indian Railways and all major Indian bus operators.

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Ruchi Pandita

Ruchi is a word-weaver, a painter, an amateur photographer and a poet at heart. The ease with with she can explain the most complex stuff impresses people around her. Being a gemini, she is never content, always looking for new ways to explore her self and the world around. The startup revolution has greatly influenced her and she is using her talent to help budding entrepreneurs find the way forward.

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