MakeMyTrip exits IPO-bound travel app ixigo with 8x returns

Mumbai: MakeMyTrip has exited IPO-bound travel app ixigo, the Nasdaq-listed company said in filings to the US Securities and Exchange Commission, clocking 8x returns on its initial investment.

The secondary transaction was worth $38.5 million with investors including Trifecta Leaders Fund-1, Bay Capital, Malabar Investments and White Oak buying out its stake, according to a source. In a secondary sale of shares, the money does not flow into the company’s coffers but goes to those who exit.

The development comes after the travel platform led by Aloke Bajpai and Rajnish Kumar raised $53 million (Rs 395 crore) in a mix of primary issuance and secondary sale of shares last month. That round was led by Singapore’s sovereign wealth fund GIC, and participation from Infoedge Venture Funds, White Oak, Bay Capital, Orios Venture Partners, Trifecta Capital and Malabar Investments, ET reported.


“On August 9, 2021, we completed the sale of our entire equity investment in the securities of an unlisted entity for a total cash consideration of $38.5 million and recorded a gain on sale of $33.1 million, net of transaction related costs, which will be reflected in our financial results for the six months ending September 30,” MakeMyTrip said on Monday, without specifically naming ixigo.

MakeMyTrip had initially invested $4.8 million in ixigo.

Deep Kalra, the founder of MakeMyTrip, has stepped down from ixigo’s board after the sale, sources said. “The realignment in the cap table comes ahead of the proposed IPO of the company,” a source with direct knowledge of the development said. Ixigo is eyeing a valuation of $750-$800 million for its IPO scheduled for the fourth quarter of the current calendar year, ET reported last month.

Also Read: Ixigo adds six new independent board members ahead of IPO

Launched in 2007, ixigo has a user base of more than 250 million. Earlier this year, the company acquired Bengaluru-based online train discovery and booking platform Confirmtkt for an undisclosed sum. Last week, the company said it had acquired AbhiBus, a Hyderabad-based bus ticketing and aggregation platform, on a slump sale basis for a mix of cash and ixigo equity shares.