SAIF completes exit of India's MakeMyTrip

The timing of SAIF’s exit and the size of its return are not clear. According to regulatory filings the GP held 6.1 million shares in the company in October 2016, giving it an 11.8% stake, but by the end of December had no shares. Given the stock’s price over this period SAIF likely received around $150 million in the sale.

According to AVCJ Research, SAIF first invested in MakeMyTrip in 2005, committing $10 million for a 51% stake. It re-upped the following year, putting in $13 million alongside Helion Venture Partners and Sierra Ventures, and took part in a $15 million round in 2007 with Tiger Global Management, Helion and Sierra. SAIF held a 41% stake at the time of MakeMyTrip’s 2010 IPO, which saw the GP sell 2.6 million shares at $14 each for a $36.6 million return.

The exit comes after MakeMyTrip’s agreement to merge with rival booking portal ibibo Group, which is backed by South African internet conglomerate Naspers Group and China’s Tencent Holdings. The all-stock deal made Naspers and Tencent the largest single shareholder in MakeMyTrip, with a combined stake of 40%. Under the terms of the acquisition SAIF had the right to sell some or all of its shares to ibibo, though it is not clear if this was actually done.

SAIF was the last of MakeMyTrip’s pre-IPO backers to exit. Chinese listed travel services firm Ctrip invested $180 million in the company in January 2016 through convertible bonds, which converted to common equity through the ibibo merger, giving Ctrip a stake in the combined company of about 10%.

According to its most recent annual report, MakeMyTrip reported revenue of $336 million for the year ended March 2016, up from $300 million the year before. Over the same period the company's net loss grew from $18 million to $88 million.

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• Topics
• South Asia
• Open market
• Consumer
• Technology
• India
• SAIF Partners
• Exit
• TMT