MakeMyTrip exits ixigo ahead of IPO

Online travel aggregator MakeMyTrip has exited from IPO-bound ixigo, a decade after its initial investment. MakeMyTrip founder Deep Kalra will step down from ixigo’s board after the sell-off. The travel aggregator has pocketed a neat 8X returns on its initial investment. MakeMyTrip had invested $4.8 million in 2011 and is leaving with a cash consideration of $38.5 million.

MakeMyTrip sold its stake to a bunch of new investors including Trifecta Leaders Fund-1, Bay Capital, Malabar Investments and White Oak.

Nasdaq-listed MakeMyTrip said in its filing with US Securities and Exchange Commission (SEC), “On August 9, 2021, we completed the sale of our entire equity investment in the securities of an unlisted entity (classified under “Other investments” in our statement of financial position), 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, 2021.”
 
ixigo, is meanwhile, scheduled to file its draft red herring prospectus (DRHP) with SEBI soon. It plans to raise around Rs 1,800 crore through this issue.

ixigo has a user base of more than 250 million. The company acquired Bengaluru-based online train discovery and booking platform Confirmtkt in February. Earlier this month, ixigo had acquired Hyderabad-based bus ticketing platform AbhiBus.

Founded in 2007 by Aloke Bajpai and Rajnish Kumar, ixigo saw investments from Sequoia Capital and Elevation Capital (formerly Saif Partners). The company had recently raised Rs 395 crore from investors led by Singapore sovereign wealth fund GIC.

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