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MakeMyTrip Raises $15 Million In Series C From Tiger Fund, Existing Backers
Mon, 10/08/2007 - 17:38 — Sahad P VIndia's leading travel portal MakeMyTrip.com has closed Series C investment of $15 million from Tiger Fund and the three existing venture capital investors - SAIF Partners, Helion Venture Partners and Sierra Ventures. In the current round, Tiger has invested $8 million, while the remaining $7 million was put in by the return backers. Deep Kalra, CEO of MakeMyTrip, has confirmed the investment.
In December last year, MakeMyTrip raised $13 million from SAIF Partners, Helion and Sierra in its second round of funding. In 2005, SAIF had invested $10 million in the company when it kicked off its India operations. The company (the US operations of MakeMyTrip) had earlier received $1 million from eVentures, which was later bought back by promoters. Now SAIF remains the largest external shareholder in the company.
This round could probably be the last round of VC investment in the company, as the next step would be to go in for an IPO. Kalra told VC Circle that the company is expected to turn profitable by May 2008, and an IPO can be expected in early 2009. It currently has $22 million commission revenues - $16 million from the domestic market and the rest from its US operations. The revenue breakup is like this: 70 per cent from ticketing and 30 per cent from hotels and packages. MakeMyTrip has so far received a total of $39 million in venture capital.
Comments
Amar,
My comments were not to put down anybody. Just that the numbers should be right and not just made up. If MMT is clocking somewhere around $6 M in commisions than why claim $22 M. Thats the only point.
I see that the net venture wannabes are very green with envy. They are mostly naysayers with no balls to start something on their own.
These numbers are the latest, according to Deep Kalra. So I would go by the latest numbers than rely on an old report which may have incorrect figures, since that was sourced from a secondary report.
A post on Contentsutra.com (feb 2007) says that in financial year 2007 MMT had more than $120 M in revenue and ~$6 M in commission.check the link below.
http://www.contentsutra.com/entry/419-makemytrip-crosses-100-million-in-...
On MMT's website they claim that they crossed $125 M in current fiscal year, so to get $22 M in commissions they have to charge 17.6% from the airlines and hotels which according to me is not possible.
Also if we do some back of the envelope calculations it shows that $16 M in commissions from the domestic market would mean that they are booking approximately 10,000 domestic air tickets per day!!
this is hilarious. $39mm investment sunk for $22mm revenue! This revenue includes the value of bookings done and not the commisssions earned which is the real revenue for the company. My guess is the real revenue on that basis will be close to $1.5mm.
All the best to SAIF partners. They are stuck in the roach motel - you can check in but can not check out!!
I like the IPO plan...unprofitable company in an ultracompetitive space already planning an IPO...demonstrates the management depth and priorities.
Nitin,
With respect to domestic market. Domestic market doesn't include just domestic tickets, it also includes international tickets booked in India, also it should include hotels and tour packages.
Also a Feb 2007 report cant give data for Financial Year 2007 as Fiscal 2007 ends in March 2007.