For booking flights, buses, trains, and hotels, Rapido has partnered with Goibibo, owned by MakeMyTrip; ConfirmTkt, owned by ixigo; and redBus. Rapido aims to become a one-stop travel app, offering its 5 Cr active users from more than 400 cities nationwide a smooth mobility experience. Prior to a possible initial public offering (IPO), the ride-hailing company is working to diversify.
Unicorn that rides Rapido has partnered with Goibibo, owned by MakeMyTrip; ConfirmTkt, owned by ixigo; and redBus to provide hotel, bus, rail, and flight booking through its app. With these features, Rapido hopes to establish itself as a one-stop travel app, delivering its 5 Cr active users from more than 400 cities around the nation a smooth mobility experience.
Rapido claimed that by combining daily mobility and trip booking into a single app, it is well-positioned to onboard the next 10 Cr digital travellers. RedBus is an online bus ticketing platform for intercity bus reservations, whereas Goibibo offers hotel and airfare bookings. ConfirmTkt is a B2C online train ticketing platform that has been authorised.
Rapido Added New Travel Section in its App
Rapido has established a new “travel” section on its app’s home screen in order to accommodate the additional services. By utilising Rapido’s reach, Goibibo, ConfirmTkt, and redBus hope to increase their user base even more with this relationship.
Rapido’s continuing diversification strategy continues with this move. A full-fledged mobility app, the ride-hailing firm started off as a bike-taxi platform for short-distance urban commuting. Over time, it added car and taxi booking services to its main business of bike ride-hailing. In an attempt to compete with Zomato and Swiggy, Rapido also entered the food delivery market earlier this year with the introduction of Ownly.
Rapido Aiming to Become Multi-Service Platform
Rapido’s strategy change to become a multi-service platform instead of a single-category competitor is reflected in the diversification, which enables it to compete with both foodtech behemoths and significant ride-hailing companies. Rapido wants to increase app engagement and diversify its revenue sources by combining various offers into a single platform.
The most recent advancement coincides with Rapido’s goal of closing a $500–$550 million fundraising round. Swiggy’s stake sale would be one of several primary and secondary transactions that would take place during the round.
Although Rapido has not yet submitted its FY25 financial figures, the company is anticipated to generate over INR 1,000 Cr in revenue during the year. It reduced its loss from INR 675 Cr in the previous fiscal year to INR 370 Cr in FY24, a more than 45% reduction. Operating revenue increased from INR 443 Cr in FY23 to INR 648.1 Cr in FY24, a 46% increase.
Quick Shots
•Rapido now offers flight, hotel, bus, and
train bookings via partner integrations.
•Rapido Collaborated with Goibibo
(MakeMyTrip), ConfirmTkt (ixigo), and redBus.
•Rapido wants to become a one-stop travel
and mobility app for its 5 crore active users across 400+ cities.
•Rapido expands beyond bike-taxi roots to
car rides, taxis, food delivery (Ownly), and now travel services.
Online travel aggregator (OTA) MakeMyTrip (MMT), which is listed on the Nasdaq, will repurchase shares from its Chinese investor Trip.com Group Limited for around $3 billion.
Trip.com announced that it has modified its share repurchase arrangement with the Indian travel tech company on June 23 in a filing with the US Securities and Exchange Commission (SEC).
In accordance with the restated agreement, MMT will purchase the interest for the sum described above. According to the filing, MakeMyTrip will pay roughly $3 billion as consideration for the aforementioned repurchase under the terms of the restated and revised share repurchase agreement that was made between the company and MakeMyTrip.
Trip.com anticipates that the deal will be finalised by the beginning of July 2025. Following the repurchase agreement, the Chinese company stated that it will continue to own approximately 16.90% of MakeMyTrip’s issued and outstanding shares.
MMT’s Strong Push to End Ties with the Chinese Firm
This comes weeks after the OTA, which is listed on the Nasdaq, initially announced that it would raise money through a main offering and senior notes in order to repurchase its interest from Trip.com Group, a Chinese investor.
MMT then raised $3.1 billion last week to buy back some of its Class B shares from Trip Group. Initially, it was anticipated that MakeMyTrip would offer 14 million main shares as part of the fundraising transaction.
However, the business later raised this figure to 18.40 million shares at $90. The Chinese investor will remain the largest minority shareholder in the travel tech company based in Gurugram, even after lowering its stake to 16.9%.
EaseMyTrip Co-founder alleging MMT of Exposing Data
A month after Nishant Pitti, a cofounder of EaseMyTrip, said that the travel tech business may reveal the information of Indian soldiers who use the platform because of its Chinese ownership, MMT accelerated the buyback agreement.
MMT, however, denied the accusations and called them “malicious”. The dispute between India and Pakistan following the Pahalgam terrorist assault was the setting for the altercation between the two domestic travel technology giants.
Notably, Moshe Rafiah, cofounder and CEO; Rajesh Magow, founder and chairman; Deep Kalra; and four Chinese members currently make up MMT’s board.
Current Financial Dynamics of MMT
Gains from a tax credit and the valuation of convertible notes propelled MakeMyTrip’s reported profit increase to US $171.9 million in the March 2024 quarter.
According to MakeMyTrip, the business made US $5.4 million in the same quarter of the prior fiscal year. According to the statement, the fourth-quarter result included a one-time gain of US $30.6 million from the change in the carrying value of the company’s convertible notes due 2028, calculated at amortised cost, and a one-time credit of US $126.1 million from the recognition of deferred-tax assets.
The gross bookings for the quarter came to US $2,039 million, up from US $1,673.9 million during the same period last year. Compared to a deficit of US $11.2 million in fiscal 2023, a profit of US $216.7 million was made for the entire fiscal year 2024.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
More Indians are now booking tickets and hotels online than ever before. Nothing can beat the comfort of being able to plan a trip from the comfort of your home. You can check out the prices and compare them to get the best deal. A company that holds a major share in the Indian online travel industry is MakeMyTrip. Since 2000, MakeMyTrip has helped millions of Indians book railway tickets, airline tickets, bus tickets, reserve hotel rooms, and buy holiday packages.
Founded in 2000 and headquartered in Gurgaon, Haryana, MakeMyTrip is one of the most popular and dependable Indian travel companies that helps the people of India avail of online travel services that include airline tickets, domestic and international holiday packages, and reservations of hotels, railways, and bus tickets.
If you want to know more about the Story of MakeMyTrip India, its Founders and Team, Growth, History, Startup Story, Mission and Vision, Products and Services, and more, then here’s the MakeMyTrip success story.
MakeMyTrip – Company Highlights
Startup Name
MakeMyTrip
Headquarters
Gurgaon, Harayana, India
Sector
Travel, Software Development
Founder
Deep Kalra, Keyur Joshi, Rajesh Magow, Sachin Bhatia
India’s leading online travel company, MakeMyTrip, was founded in 2000 by Deep Kalra, Keyur Joshi, and Sachin Bhatia, and later joined by Rajesh Magow. Headquartered in Gurgaon (Haryana), the company provides online travel services that include flight tickets, domestic and international holiday packages, hotel reservations, and rail and bus tickets.
The research of Statista indicates that the travel and tourism sector is expanding favorably. The projected yearly growth rate between 2023 and 2027 is an outstanding Compound yearly Growth Rate (CAGR) of almost 12.18%, with a projected value of US $31.45 billion by 2027. These figures highlight the industry’s strength and point to a continuing upward trend, indicating tremendous potential for consistent growth and a plethora of opportunities in the Travel and Tourism sector going forward.
MakeMyTrip – Founders and Team
Deep Kalra, Keyur Joshi, Rajesh Magow, and Sachin Bhatia are the co-founders of MakeMyTrip.
Deep Kalra
Deep Kalra, Founder and CEO of MakeMyTrip
The founder of MakeMyTrip, Deep Kalra, was raised in Hyderabad, attended St. Stephen’s College in Delhi for his economics degree, and graduated with an MBA from IIM Ahmedabad in 1992. He left ABN AMRO after three years to work in business development at GE Capital. In the past, he worked with AMF Bowling to bring bowling alleys to India. With the launch of MakeMyTrip in 2000, Kalra revolutionized the Indian travel sector by introducing cutting-edge online services.
As the CEO of MakeMyTrip, Deep Kalra guided the company from its inception till its listing on NASDAQ in August 2010. From August 2013 to February 2020, Kalra functioned as the Group CEO. In February 2020, Deep Kalra stepped down from the post of Group CEO to resume responsibilities as executive chairman of the MakeMyTrip board, while co-founder and current group CEO Rajesh Magow took charge as the Group CEO.
“We believe that separating the roles of Group CEO and Executive Chairman will allow us to focus more on long-term strategic opportunities within and outside India, while maintaining our market-leading position in our existing businesses,” MakeMyTrip owner Deep Kalra commented on his step-down.
Kalra also serves as the vice chairman of Internet and Mobile Association of India. He is one of the founders of Ashoka University and is a part of its governing body. He is also a founding member of “I am Gurgaon”, an NGO.
Rajesh Magow, a co-founder of MakeMyTrip, currently serves as the company group CEO. Magow graduated from the Indian Institute of Chartered Accountants. He began his career with Aptech Ltd. as the Regional Head-ACE North. Afterward, he joined Ebookers as CFO and Head of Financial Services before joining MakeMyTrip as co-founder, CFO, and COO. Magow has held a number of executive positions within the corporation, including those of Group CEO, COO, and CFO.
Keyur Joshi
Keyur Joshi – Founder and COO of MakeMyTrip
Keyur Joshi is the co-founder and Chief Operating Officer (COO) of MakeMyTrip and the Strategic Advisor, roles that he is still serving in the company. Besides this, he is also the co-founder of Wildlife Luxuries (I) Pvt. Ltd. The jumpstart of the online travel market in India can largely be attributed to Joshi.
Before MakeMyTrip, Joshi was involved with Around the World Travel (presently known as JustFares.com), and Tata Motors, where he handled the Market Research and Product Management departments. Keyur has obtained a Bachelor’s degree in Chemistry from Gujarat University. This was again followed by an MBA degree from the City University of New York, New York. Joshi is also a certified pilot!
Apart from the resignation of Sachin Bhatia, who resigned as the co-founder and CMO of the company, the founding team of MakeMyTrip is intact.
MakeMyTrip – Subsidiaries
MakeMyTrip Subsidiaries are Ibibo, Easy to Book Holding B.V., ITC Group, Luxury Tours & Travel Pte Limited, Quest2travel.com India Pvt. Ltd., Hotel Travel Ltd., Travis Internet Private Limited, MakeMyTrip (India) Private Limited, and Makemytrip.com Inc.
MakeMyTrip – Startup Story
MakeMyTrip’s genesis lies in the entrepreneurial spirit of its founder, Deep Kalra. Initially an experienced banker at ABN AMRO Bank, Kalra felt the urge to break away from the monotony of corporate life and explore new avenues. After three years in the banking sector, he sought challenges beyond the confines of a traditional career. This quest led him to join AMF Bowling, which aimed to introduce bowling alleys to India. Despite facing challenges in fundraising and the subsequent failure of this venture, Kalra’s determination to run his own business remained unshaken.
Undeterred by setbacks, Kalra found himself at GE Capital, where he gained valuable insights into the potential of the internet. The realization dawned when he successfully sold his wife’s car online, sparking the idea that the internet could be a powerful platform for his entrepreneurial aspirations. Acknowledging the vast possibilities, he resigned from GE Capital and ventured into the world of online businesses.
The turning point for MakeMyTrip came during Kalra’s research into the tourism sector. Recognizing the inconvenience faced by Indians queuing at ticket counters, he envisioned a solution that would make ticket bookings accessible online. This insight solidified the foundation of MakeMyTrip. While planning a holiday to Thailand, Kalra observed the cost efficiency of direct online bookings and decided to eliminate intermediaries, leading to the official launch of MakeMyTrip in 2000. The platform aimed to simplify ticket bookings and offer competitive prices, marking the beginning of a transformative journey in the online travel industry.
MakeMyTrip – Mission and Vision
MakeMyTrip’s mission is to “provide customers a one-stop-shop for all their travel needs.” It helps the users get optimum user experience across the entire travel journey, which includes “effective planning resources, superior booking experience across all channels, and in-journey 24×7 live customer support.”
At GO-MMT, our vision is to make travel simple and fun for all, and our core values guide us in making this possible. These core values can be seen in the projects that we undertake, and the way in which we solve problems for our customers. They are a representation of OUR BEING & OUR DOING. Each member of the GO-MMT family is guided by them, each and every day, says the company website while stating its vision and values.
MakeMyTrip – Name, Tagline, and Logo
MakeMyTrip’s tagline is “Dil toh roaming hai”, which the company announced in April 2017.
MakeMyTrip Logo
MakeMyTrip – Business Model
MakeMyTrip lets users book air tickets and bus tickets, buy holiday packages, book hotel accommodations, and hire vehicles. Users can also access other travel-related services, like visa processing and travel insurance, that are provided by third-party vendors. All of these services are available through MakeMyTrip’s app, website, or through MakeMyTrip-owned and franchisee-owned stores.
Besides this B2C model, MakeMyTrip India has also introduced MyBiz to offer various corporate travel-related services. MyBiz lets businesses easily manage the travel and accommodation of their employees through various features, such as a single dashboard, MyBiz wallet for central payment processing, and instant refunds to myBiz Wallet on cancellations.
MakeMyTrip’s revenue model combines traditional and innovative elements, with a focus on strategic air ticket sales contributing 35% to the total revenue. Complementing this, hotels and holiday packages constitute a substantial around 50% of earnings. The transport segment, led by Red Bus, adds 10%, growing at an impressive 35% annually. MakeMyTrip has expanded its revenue streams by partnering with IRCTC for rail tickets and introducing weekend travel, activities, and events.
Domestic travel takes center stage in revenue generation, with 60% of air ticket revenue and 85–90% of hotel business revenue attributed to domestic travel. This highlights MakeMyTrip’s adaptability to regional preferences and solidifies its position as a comprehensive travel solution.
MakeMyTrip Limited is an Indian online travel company founded in 2000. It’s services include air ticketing, hotel and alternative accommodations bookings, holiday planning and packaging, rail ticketing, inter-city bus ticketing, car hire, and ancillary travel requirements such as facilitating access to third-party travel insurance and visa processing.
The company is the industry leader in India’s travel sector thanks to its continuous innovation culture and “customer first” strategic focus. This puts it in a unique position to accelerate the online presence of hotels and other lodgings that are largely offline.
MakeMyTrip employs a sizable number of data scientists in their workforce. It makes considerable use of chatbots: Myra for MakeMyTrip and Gia for Goibibo. These chatbots assist with most post-sale inquiries.
MakeMyTrip – Challenges Faced
“The meltdown of dotcom, the exit of venture capital from India, and the 9/11 attacks. By mid-2001, MakeMyTrip were hit by this triple whammy. The next couple of years were the toughest — there were no investors in sight and the company had to shrink the team. But those tough times helped bind the team together. It’s been an incredible journey and the team are thrilled for the possibilities that lie ahead.” said Deep Kalra Founder.
MakeMyTrip celebrated turning 20 in 2020, marking 20 years of assisting customers with travel arrangements. Unfortunately, the worldwide pandemic made it happen during a difficult period. For everyone, traveling was challenging due to the coronavirus. MakeMyTrip used its knowledge to adapt and come up with new ways to assist travelers in spite of this obstacle. The business demonstrated that it could overcome obstacles and remain a leader in the travel sector even in the face of this challenging circumstance.
MakeMyTrip – Funding and Investors
MakeMyTrip has raised $748 mn in over 6 rounds of funding.
Here are the funding details:
DATE
STAGE
AMOUNT
INVESTORS
February 6, 2021
Post-IPO Debt
$200 mn
–
May 3, 2017
Post-IPO Equity
$330 mn
–
January 8, 2016
Post-IPO Equity
$180 mn
Trip.com
October 8, 2007
Series C
$15 mn
Tiger Fund
December 14, 2006
Series B
$13 mn
Helion Venture Partners, Sierra Ventures
May 1, 2005
Series A
$10 mn
Tiger Fund
MakeMyTrip – Investments
MakeMyTrip has made 7 investments to date. Here’s all of them below:
DATE
NAME OF THE COMPANY
INVESTMENT ROUND
LEAD INVESTOR
February 29, 2020
ibibo Group
Venture Round
Yes
September 24, 2019
PasajeBus.com
Series A
Yes
July 26, 2018
Bitla Software Pvt. Ltd.
Venture Round
Yes
September 6, 2017
GoFro
Series B
Yes
July 20, 2015
HolidayIQ
Series B
Yes
June 25, 2015
Inspirock
Seed Round
–
August 11, 2011
ixigo
Series A
–
MakeMyTrip Exit
It has exited from two companies, ibibo Group and Inspirock.
MakeMyTrip – Mergers and Acquisitions
MakeMyTrip has made 5 acquisitions to date.
The MakeMyTrip fintech arm TripMoney has acquired BookMyForex, an online foreign exchange service provider in India, on April 5, 2022, through the acquisition of the majority of the stakes in the company.
Here’s a look at the list of the companies that MakeMyTrip has acquired:
COMPANY ACQUIRED
DATE OF ACQUISITION
AMOUNT
Quest2Travel
May 1, 2019
–
ibibo Group
October 18, 2016
$720 mn
Mygola
April 23, 2015
–
Easytobook.com
February 6, 2014
$5 mn
HotelTravel.com
November 19, 2012
$25 mn
Some other investments and acquisitions that MakeMyTrip has made during its journey till now are:
In August 2011, MakeMyTrip (MMT), along with private equity firm Saif Partners, acquired majority stakes in Travenues Technology Private Limited, which owns Ixigo.com. In November 2011, MMT invested in ‘My Guest House Accommodation’, a budget lodging and hotel operator.
In September 2014, the company instituted a $15 mn innovation fund to support early-stage companies in the travel space. It also acquired MyGola, a travel planning website, in April 2015. The acquisition was done through the innovation fund, and as part of the acquisition, all employees of MyGola were absorbed into the MakeMyTrip team.
In June 2015, MakeMyTrip acquired an 18% stake in travel planning startup Inspirock. In July 2015, it invested in travel information and hotel review portal HolidayIQ to pick up an approximately 30% stake in the latter. In the same month, it also invested $5 mn in BonaVita Technologies, a startup that plans to utilize the funds to build innovative products in the travel industry.
MakeMyTrip – Growth
Starting its journey at the start of the millennium, MakeMyTrip has entirely transformed the ways of travel and bookings and has made the whole process fast, easy, and hassle-free not only for its customers but for the whole country in general. Some of the major growth insights of the company are:
As of June 2023, MakeMyTrip had 146 active franchisees operating in more than 100 cities
It has covered 2,000 cities via hotels
It also has international offices based in Dubai, Kuala Lumpur, Bangkok, New York, Singapore, Phuket, and Istanbul
MakeMyTrip has 68 mn+ monthly active users as per its website
It has 69 mn+ lifetime transacted users
In the post-pandemic world, the company also claims to help the users get 100% refund on their cancellations
MakeMyTrip – Financials
MakeMyTrip has shown strong revenue growth in recent years, with a sharp turnaround to profitability in FY24.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 5,490.4 Cr
INR 4,062.2 Cr
INR 2,034.1 Cr
INR 848.1 Cr
INR 3,160.7 Cr
Expenses
INR 4,863.9 Cr
INR 3,975 Cr
INR 2,097 Cr
INR 1,053.1 Cr
INR 3,593.6 Cr
Profit/Loss
INR 626.5 Cr
INR 87.1 Cr
INR -62.8 Cr
INR -205 Cr
INR -432.9 Cr
MakeMyTrip Financials
In FY24, MakeMyTrip’s revenue increased by 35% from INR 4,062.2 Cr in FY23 to INR 5,490.4 Cr, while expenses also increased to INR 4,863.9 Cr. The company reported a profit before tax of INR 626.5 Cr, a huge jump from INR 87.1 Cr in FY23.
MakeMyTrip Revenue:
Revenue Source
FY24
FY23
Revenue from Operations
INR 5,336.1 Cr
INR 4,006.5 Cr
Other Income
INR 154.3 Cr
INR 55.7 Cr
Revenue from operations grew by 33%, reaching INR 5,336.1 Cr in FY24 compared to INR 4,006.5 Cr in FY23. Other income saw a massive increase from INR 55.7 Cr to INR 154.3 Cr.
MakeMyTrip Expenses:
Expense Type
FY24
FY23
Employee Benefit Expense
INR 883.3 Cr
INR 781.8 Cr
Finance Costs
INR 63.2 Cr
INR 101.7 Cr
Other Expenses
INR 3,917.4 Cr
INR 3,000.2 Cr
Total expenses increased by 22%, rising from INR 3,975 Cr in FY23 to INR 4,863.9 Cr in FY24. Employee costs increased, while finance costs decreased from INR 101.7 Cr to INR 63.2 Cr, showing better financial management.
MakeMyTrip Profit/Loss:
MakeMyTrip achieved a huge jump in profitability, with net profit surging from INR 80.1 Cr in FY23 to INR 1,569.7 Cr in FY24, reflecting strong revenue growth and cost efficiency.
Quick Summary:
Revenue: Grew 35% from INR 4,062.2 Cr (FY23) to INR 5,490.4 Cr (FY24).
Expenses: Increased 22%, mainly due to higher operating costs.
Profit: Massive jump from INR 80.1 Cr in FY23 to INR 1,569.7 Cr in FY24, showing strong financial turnaround.
MakeMyTrip – Partnerships
MakeMyTrip, in its 20+ year-long journey, has witnessed numerous partnerships with a whole lot of brands. Here’s a glimpse into some of the most important collaborations that MakeMyTrip has witnessed in recent years:
The Indian travel company led by Rajesh Magow was all set to partner with the Ministry of Civil Aviation, as per reports dated November 22, 2021. With this partnership, the popular travel and tourism company was about to ensure the promotion of regional air connectivity via the UDAN scheme. The company planned to power the UDAN flights on the AIRSewa portal and to market the same on its platform as well in order to promote its products and increase visibility and product discovery.
MakeMyTrip has partnered with IndiGo to launch exclusive charter flights between Mumbai and Phuket in Thailand. The announcement came in on November 10, 2021, where MakeMyTrip, as part of the deal, will ensure end-to-end service assistance, including airport transfers, early check-in and check-out, certificate of entry assistance, premium properties, and more.
The company entered into a strategic partnership with AmazonPay to offer all-inclusive travel services to Amazon customers that will be enabled by MakeMyTrip and Redbus. This partnership was announced on November 1, 2021.
The Indian travel major collaborated with Hopper, a leading AI-based travel booking app, on October 14, 2021, which was aimed to help the customers save money with personalized and flexible bookings.
MakeMyTrip – Advertisements and Social Media Campaigns
Ranveer Singh and Alia Bhatt are the brand ambassadors of the MakeMyTrip company, whom the company roped in on February 17, 2016.
MakeMyTrip | Top-Rated International Hotels Loved by Indians!
MakeMyTrip, an online travel company, has launched a funny new campaign that highlights real travel problems. This three-film campaign focuses on International Hotels, Homestays & Villas, and Domestic Hotels. Using relatable situations, it turns common travel frustrations into entertaining stories. Featuring Bollywood stars Alia Bhatt and Ranveer Singh, the campaign shows how MakeMyTrip helps travelers easily find the best places to stay—both in India and abroad.
MakeMyTrip – Awards and Achievements
The list of accolades received by the company is quite long. Here are some of them:
Great Manager Awards – Companies with Great Manager Award 2022.
Economic Times – Future Ready Organization Award 2022.
ET Human Capital Awards – Most Inclusive Companies Index Exemplar 2022.
Most Inclusive Company Index Study – 100 Best Companies For Women – 2022.
Best Travel Innovator – Travel Distribution World Asia Awards (2012).
Singapore Airlines – Top agents award (2010-2011); Top Passenger Agent (2007-08).
Malaysia airlines – Top Agent Award (2007); Top agent award (2009); Top agent award (2010).
Cathay Pacific – Outstanding performance in (2009); Outstanding Performance (2007).
Air Mauritius – All India Top Ten Agent/Top North India Sales Award (2007-08); All India Top Ten Agent/Top North India Sales Award (2006-07).
British Airways – Outstanding Revenue Contribution (2007-08).
Lufthansa – Outstanding Performance (2006-07).
Indian Airlines – Achieving Highest Domestic Passenger Sales (2006-07).
MakeMyTrip plans to become a one-stop travel app by offering many travel services in one place. It will use AI and data to give users a more personalized experience. The company also wants to expand worldwide and grow in religious tourism, which is becoming more popular.
FAQs
What is Make My Trip?
MakeMyTrip is an online travel company founded by Deep Kalra, Keyur Joshi, and Sachin Bhatia in 2000, who were later joined by Rajesh Magow. The company is headquartered in Gurugram, Haryana and offers online travel services including domestic and international holiday packages, hotel reservations, rail, bus and flight tickets.
Who is MakeMyTrip founder?
Rajesh Magow is the co-founder and Group CEO of MakeMyTrip. Rajesh joined Deep Kalra, Keyur Joshi and Sachin Bhatia, the founders of MakeMyTrip, in 2006.
What are the names of MakeMyTrip subsidiaries?
MakeMyTrip Subsidiaries are Ibibo, Easy to Book Holding B.V., ITC Group, Luxury Tours & Travel Pte Limited, Quest2travel.com India Pvt. Ltd., Hotel Travel Ltd., Travis Internet Private Limited, MakeMyTrip (India) Private Limited, and Makemytrip.com Inc.
Which is MakeMyTrip origin country?
MakeMyTrip Limited is an Indian online travel company founded in 2000.
Who owns MakeMyTrip?
MakeMyTrip is owned by MakeMyTrip Limited, a publicly traded company listed on the NASDAQ stock exchange under the ticker MMYT. It was founded by Deep Kalra in 2000. The company’s major shareholders include institutional investors, with Ctrip (now Trip.com Group), a Chinese travel services company, being a significant stakeholder.
When was MakeMyTrip founded?
MakeMyTrip was founded in 2000 by Deep Kalra, Keyur Joshi, Rajesh Magow, and Sachin Bhatia.
On 17 November 2024, online travel agency MakeMyTrip announced that it would purchase CRED’s Happay Expense Management Platform. MakeMyTrip hopes to establish itself as the leading platform for all-inclusive business travel and cost management solutions with this acquisition. “By concentrating on innovation and a smooth user experience, we have continuously outpaced industry growth in the corporate travel sector over the past few years,” MakeMyTrip said in a statement.
Happay, an expense management platform that simplifies corporate spending, reimbursements, and expense tracking for organisations, was founded in 2012 by Anshul Rai and Varun Rathi. In 2021, CRED purchased the company for $180 million.
Details of the Agreement
The Happay brand, its cost management division, and its committed staff will switch to MakeMyTrip in accordance with the terms of the agreement. The team and payments division of Happay, which has concentrated on creating a cutting-edge technological stack and business payments solutions, will stay with CRED.
By emphasising innovation and a smooth user experience, MakeMyTrip has continuously surpassed industry growth in the business travel sector over the last four years, according to Rajesh Magow, the company’s co-founder and group CEO.
It makes sense for MakeMyTrip to take the lead in this market by acquiring Happay’s name and spending management system. He claimed that MakeMyTrip is poised to once again raise the bar for corporate travel and cost management in India by incorporating Happay’s experience, which includes more than 900 corporate clients.
In the following 90 days, the deal should be finalised. According to Kunal Shah, the creator of CRED, the organisation is committed to creating solutions that facilitate financial advancement. The business is putting both teams, who have developed industry-leading products and capabilities, in a position to grow in their respective fields by allowing each vertical to play to its strengths. The company is thrilled about the payments team’s chance to make B2B payments a smooth, dependable, and quickly expanding experience.
Financial Dynamics of MakeMyTrip
In addition to providing services including airline tickets, hotels and other lodging, vacation planning and packages, rail and bus tickets, auto rentals, and forex services, MakeMyTrip is the owner and operator of several web brands, including MakeMyTrip, Goibibo, and RedBus. In the second quarter of this fiscal year, it reported revenue of $211 million, up 24% year-over-year, and a profit of $17.9 million, up from $2 million in the same period last year.
The company’s official financial statement claims that MakeMyTrip currently serves over 450 major corporate clients through Quest2Travel, a platform designed for large corporations, and over 59,000 corporate clients through MyBiz, a platform designed for small and medium-sized corporates.
It has become common to see top-of-the-line celebrities endorsing brands on-screen. The demand for the right brand ambassadors is so high that many brands even compete with each other for the right person that would fit in well with the brand’s ideology and its products. Choosing the face for the brand with qualities of social relevance, commercial appeal, and brand value is one of the most essential parts of marketing strategies in the 21st century.
One of the celebrities that are most in-demand for endorsements is Alia Bhatt, as she has all the criteria needed by the advertisers these days. Alia Bhatt is a British-born Indian actor and singer that works predominantly in the Bollywood industry.
The actress is known for her work in movies like Student Of The Year, Raazi, Highway, 2 States, Udta Punjab, Dear Zindagi, Gully Boy, etc. Alia is one of the most popular and the highest-paid actresses in the country and was also featured in Forbes India’s Celebrity 100 and Forbes Asia in their 30 Under 30 list of 2017.
Despite her acting career, Alia also launched her own line of clothing called Ed-A-Mamma, a production company Eternal Sunshine Productions, and is also a founder of ecological initiative CoExist.Alia Bhatt is known to charge over Rs. 1 to 2 crore per day for the endorsements she does. Alia Bhatt’s brand value surged to USD 102.9 million in 2022, a significant increase from USD 68.1 million in 2021, securing her position at the top of the list. In this blog, we will explore the impressive list of brands that Alia Bhatt has endorsed, highlighting her influence and impact in the advertising world.
Aurelia, the clothing brand announced its first campaign on February 16, 2022, which will be featuring Alia Bhatt. The maiden campaign of the TNCS Clothing’s ethnic apparel brand is termed “Be Compliment Ready” and will be a series of films with humorous undertones, which will be aiming to highlight the beauty of effortless styling. With the start of the new year 2022, this Aurelia ad will be among Alia Bhatt’s new ads.
Alia Bhatt’s brand endorsement with Aurelia has brought together the best of traditional Indian wear and contemporary fashion. With Alia’s magnetic personality and fashion-forward approach, Aurelia continues to thrive as a go-to brand for ethnic wear enthusiasts across the country.
On January 11, 2022, the announcement was made that Alia Bhatt would be the new face of Blenders Pride, a renowned premium whiskey brand in India. Owned by Pernod Ricard and launched in 1995, Blenders Pride has gained popularity for its unique blend of Indian grain spirit and imported Scotch malts, offering a distinct and refined taste without any artificial flavors.
The recent campaign film titled “Made of Pride” features Alia Bhatt, showcasing her remarkable journey to success. The advertisement captures Alia’s unwavering determination and showcases her “never give up” attitude, highlighting her pride in her accomplishments.
The collaboration between Alia Bhatt and Blenders Pride represents a synergy between the brand’s values and the actress’s persona.
Netflix
Netflix is an American subscription-based video streaming service and production company that was launched in August 1997, and has grown to be one of the most liked OTT platforms among the world of platforms available today including Amazon Prime, Hotstar, ALTBalaji, Zee 5, Voot, SonyLIV, Hoichoi and more.
The popular on-demand video streaming platform collaborated with Alia Bhatt on December 14, 2021, to announce the slashing of its subscription prices in India.
Cadbury, a name that needs no introduction, has become synonymous with chocolate, especially in India. Originally known as Cadbury’s and Cadbury Schweppes, it is a British multinational confectionery company that is now fully owned by Mondelez International. With its headquarters located in Mumbai, India, Cadbury has established itself as a household name in the chocolate industry.
One of Cadbury’s popular chocolate wafer products in India is Cadbury Perk. In an exciting announcement, Alia Bhatt, a youth icon among Indian actresses, was revealed as the face of the Cadbury Perk brand. The association between Alia Bhatt and Cadbury Perk adds a touch of youthful exuberance and charm to the brand. In the Cadbury Perk ad that premiered on March 5, 2021, Alia Bhatt captured the hearts of audiences with her infectious energy and vibrant persona.
Cornetto is one of the well-known brands of frozen desserts in India. Cornetto or the “little horn”, as it is known in Italian, is originally an Italian brand of frozen dessert. The company first introduced Cornetto in 1959 and is manufactured and owned by the Anglo-Dutch company Unilever.
Alia Bhatt has been the brand ambassador of Cornetto, marketed as Kwality Walls Cornetto, and had collaborated on numerous occasions in “Do uh like Cornetto” and others, the latest one of which is in the form of the campaign titled “make the first move”, featuring Alia and Rohit Saraf.
Flipkart
Flipkartis one of the top e-commerce platforms with its headquarters in Bengaluru, Karnataka. Flipkart held over 39.5% of the market share of the e-commerce industry and has acquired companies like Myntra and PhonePe over the years.
Flipkart made Ranbir Kapoor and Alia Bhatt its brand ambassadors in 2019 and launched the sixth edition of the “India Ka Fashion Capital” campaign, which was a success right away. The eCommerce giant had last launched the 9th edition of its campaign in November 2021, which had Alia in it and was an equal success!
In an interview, Vikas Gupta the Vice president and marketing head of Flipkart said that:
“They are not only fine actors but also hugely popular style icons. Through this latest campaign and our proposition of ‘Don’t stress, Karo impress,’ we are confident that we will help address consumer concerns and encourage them to interact with our platforms.”
Alia Bhatt’s association with Flipkart goes beyond being just a brand ambassador. She has actively participated in Flipkart’s initiatives and events, engaging directly with customers and fans. Her involvement has not only added star power to the brand but has also created a sense of trust and reliability among consumers.
Lays is one of the best potato chip brands from the United States. The company was initially called Frito lays with the Fritos and is currently owned by PepsiCo since 1965. Lays is called by different names across the world, for example, Walkers in the UK and Ireland, Smith’s in Australia, Chipsy in Egypt and the West Balkans, Tapuchips in Israel, Margarita in Colombia, Sabritas in Mexico, etc.
The company was launched in India in 1995 and has so far has had brand ambassadors like Mahendra Singh Dhoni, Gautam Gambhir, Saif Ali Khan, etc. The company made Alia Bhatt and Ranbir Kapoor the brand ambassadors of Lays in October 2019. Both the actors have become part of the ‘Smile Deke Dekho’ campaign and have appeared in many commercials together. The secret behind the campaign is the new Lay’s packaging which showcases how a smile can universally connect and conveys a mood or emotion effortlessly.
Even for the latest Lays campaign, which the company launched in December 2021, Alia Bhatt was seen alongside Siddhant Chaturvedi to promote its thinnest wafers.
Garnier
Garnier is a cosmetics company that is a subsidiary of the French cosmetics company L’Oréal, designed as a mass market cosmetics brand. Garnier Skin Naturals first announced Alia Bhatt as its brand ambassador in 2013. The popular cosmetics brand eventually announced Alia Bhatt as the new face of its hair care brand Garnier Fructis in June 2014. Since then Garnier has featured Alia Bhatt on many occasions after the partnership happened. Furthermore, it also takes credit for bringing Alia and her mother Soni Razdan on the screen for the first time in its Fructis ad in 2015.
The latest Garnier advertisement was that of Garnier Light, which was launched in June 2020 that had Alia Bhatt in it.
Manyavar was originally created by Ravi Modi in 1999, the brand is credited for reinventing the men’s ethnic wear category. The company is also known for wedding wear and is a one-stop-shop for grooms, brides, and the family providing a wide range of clothes for all the functions.
Manyavar now owns a retail space of 4,50,000 sq.ft with more than450 stores which include 60 flagships. It also has 12+ international stores across 173+ cities in countries like India, the USA, Bangladesh, Nepal, and UAE. Initially, Anushka Sharma and Virat Kohli were the brand ambassador of Manvayar Mohey but the brand then replaced the power couple with Alia Bhatt in August 2019, which was later confirmed in September 2019.
Since then, actresses have been featured in many of its ads, the most recent commercial has Alia playing the role of a bride in the Manyavar Mohey range of clothes. In a statement, Alia said that she was extremely excited to work with the company and that looks forward to connecting with young women everywhere, through this campaign, which is all about a bride’s emotions on her special day.
Frooti is the second-largest mango-flavored drink sold in India. It is a flagship brand and one of the most successful drink products made by Parle Agro. The brand was originally launched in 1985 in the tetra pak packaging and now in PET bottles and rectangular tetra packs.
Frooti can be found in the countries such as the USA, UK, UAE, Canada, Saudi Arabia, Malaysia, Maldives, Singapore, Thailand, New Zealand, Australia, Mozambique, Ghana, Malawi, Zambia, Nigeria, Tanzania, Japan, and Ireland. The drink has had many popular celebrities like Allu Arjun, Shah Rukh Khan endorsing the brad before.
The brand spent 40% more on its marketing in 2013 and made Alia Bhatt its brand ambassador in 2017. Nadia Chauhan, the Joint Managing Director at Parle Agro said that :
“The mango-based drinks control over 90% of the total market, which is why we need to re-invent ourselves within the segment. With the help of Alia, the new product will address different target consumers and will build the Frooti franchise further.”
The Frooti company roped in Ram Charan along with Alia Bhatt in its latest advertisement that was rolled out on April, 2023.
PhonePe
PhonePe is an Indian financial payment and e-wallet company based out of Bengaluru. Founded by Sameer Nigam, Rahul Chari, and Burzin Engineer, and launched in December 2015, PhonePe has been an industry leader in the digital payments sector in India.
The popular fintech company is another big name that one can recount while listing Alia Bhatt’s brand endorsements. The fintech giant roped in the daughter of filmmaker Mahesh Bhatt in February 2020 along with Aamir Khan as the brand ambassadors. The first PhonePe advertisement with Alia Bhatt came out in the month of October in the same year. The newest PhonePe ad titled was rolled out on Oct 21, 2022, which featured Alia Bhatt.
Samsung Electronics is a South Korean electronics company founded on January 13, 1969, and headquartered in the Yeongtong District of Suwon. In 2019, Samsung became the world’s second largest technology company by revenue, which boasted a market capitalization of $520.65 billion.
Samsung India also roped in Alia Bhatt as the brand ambassador of the premium Galaxy range of smartphones on August 18, 2021. This eventually led Alia Bhatt to advertise its Galaxy Z foldable phones, the recent one of which advertises the Galaxy foldable phones along with featuring the Samsung Global Goals app. This app is integrated into all Galaxy smartphones and helps the users to contribute the causes that matter most to them in a simple manner.
Founded in 1963, Duroflex is a mattress and sleep solutions provider headquartered in Bengaluru that was started in Alleppey by the late PC Mathew. One of the trusted sleep solutions service providers, Duroflex had roped in Alia Bhatt as its brand ambassador and has then featured Bhatt in some of its advertisements, the first of which was launched in August 2021. The latest one ad “Alia’s Secret is Out” was launched in Sep 16, 2022.
Philipsis one is the most trusted electronic multinational company that was originally founded by Gerard Philips in 1891.The company has its headquarters based in Amsterdam and was formally one of the largest electronics companies in the world.
The company is currently focused on the area of health technology and is branching into other sectors. Philips is known to have over 80,000 people in 100+ different countries. The company signed Alia Bhatt as its brand ambassador for its beauty range.
The actress has done many ads for Philips endorsing its hair appliances from the range of Philips Kerashine and a variety of depilation devices. In a statement, the company said that the actress will help the company take the style revolution among the new age Indian women to the next level. The most recent advertisement of Philips where Alia Bhatt was featured was the Right Heat campaign where the electronics giant focused on bringing its innovative solution, Philips Hair Straightener, which was rolled out in Feb 15, 2023. This is one of Alia Bhatt’s new ads for electronics brands.
Tresemme is an American brand of haircare products the first product of which was manufactured in 1947 by the Godefroy Manufacturing Company in Manhattan, New York City.
The Indian subsidiary of the popular haircare brand, Tresemme India roped in Alia Bhatt as the new face of the brand in place of Jacqueline Fernandez on October 10, 2020.
Formerly known as Hero Honda, Hero MotoCorp is an Indian multinational scooter and motorcycle manufacturing company founded in January 1984 by Brijmohan Lall Munjal. With over 37% of the market share in the two-wheeler industry, the company is hailed as the largest manufacturer of two-wheelers in India and in the world.
Hero MotoCorp is another company that has rooted for Alia Bhatt when it announced its partnership on June 20, 2014. The latest Hero advertisement was to promote its Hero Pleasure scooter that was rolled out on January 10, 2022, was the last Alia Bhatt advertisement of the brand.
Maybelline
Maybelline, also known as Maybelline New York is an American multinational company that offers a wide range of cosmetics, skincare, fragrance, and personal care products that are loved by women around the world. Maybelline was acquired by L’Oreal the French cosmetic conglomerate in 1996 and has its base or is headquartered in New York.
Maybelline New York is known to be the number one global cosmetics brand as it is available in over 129 countries worldwide, offering more than 200 products at affordable prices. Alia has been the face of Maybelline since 2013 and has appeared in many ad commercials endorsing its products.
In an interview, Satyaki Ghosh, Director, L’Oréal Consumer Products Division, said that:
“We are thrilled to have Alia as the ambassador on Maybelline because she represents the young, contemporary cosmopolitan girl who is attuned to fashion at all times and loves to wear make-up.” He also added that with the launch of the BabyLips Kiss Song, the company hopes to do something different for their consumers and engage with them as much as possible with the brand.
Sunsilk is a haircare brand owned by Unilever. The British haircare brand that was founded in 1954 and introduced in 1974 in the UK, is a haircare major in India as well. Alia Bhatt partnered with Sunsilk on several ads to date, the recent one of which came out in October 2018.
MakeMyTrip
MakeMyTrip is a popular online travel company from India, founded in 2000 by Deep Kalra.The company has its headquarters in Gurugram and is known to provide online travel services such as flight tickets, domestic and international holiday packages, hotel reservations, rail and bus tickets among others.
As of 2018, MakeMyTrip has more than 14 company-owned travel stores in 14+ cities, over 30 franchises owned stores in 28+ different cities, including counters at the 4 main airports of the country. The company has its presence in countries such as New York, Singapore, Kuala Lumpur, Phuket, Bangkok, and Dubai.
MakeMyTrip announced its brand ambassadors as Alia Bhatt and Ranveer Singh in 2016 and the duo has so far appeared in many television commercials and campaigns that have garnered high visibility and presence across different mediums.
The popular Indian travel-based company has last promoted its “FLAT 25% Off* on First Hotel booking” offer in Apr, 2023, when the Ranveer-Alia duo was seen again.
MakeMyTrip in a statement said that it choose the two actors in order to connect with the brand’s younger target audience and to strengthen the brand’s appeal, stature, and recall.
LUX
LUX is another Unilever-owned brand that is primarily marketed in India, Brazil, Thailand, and South Africa. LUX was introduced in 1925. Lux has a rich heritage of collaborating with leading celebrities from the film and fashion industry, and Alia Bhatt was chosen as the face of Lux, adding to the brand’s star-studded legacy.
Alia Bhatt’s association with Lux brings together her captivating beauty and charismatic persona with Lux’s commitment to providing indulgent and pampering experiences. Through her endorsement, Alia embodies the essence of Lux, which is all about embracing one’s beauty and feeling confident in one’s skin.
Uber Eats is an American food ordering and delivery platform, which was founded in 2014 by its parent companyUber. The company has its headquarters in San Francisco, California. UberEats operates in over 32 countries and has seen a rise of 30% during the Covid 19 Pandemic as people avoided social interaction for fear of contracting the virus in 2020.
In India however, Zomato acquired all of UberEats stock in January 2020. In exchange, Uber also got 10% stakes in Zomato and Zomato would gain all the users of UberEats in India. Uber Eats has so far gained popularity among consumers across 37 cities in India to order food of their choice at the click of a button.
Uber Eats made Alia Bhatt its brand ambassador in 2018, who has appeared in many of its commercials and campaigns. Commenting on why the company choose Alia Bhatt, the company said that the actress’s effortless performances in bringing out the essence of every character she plays, she has positioned herself as one of India’s most loved youth icons.
The Uber-owned food aggregating and delivery startup launched its latest advertisement in January 2019 titled “Everyday Moments” which featured Alia Bhatt.
Sunfeast Dark Fantasy is a popular snack brand that is owned by ITC Limited. The brand is known for its products such as premium chocolate crème flavored biscuits and cakes. The Dark Fantasy Choco Fills is one of the top biscuits found in the market as it has wowed the Indian consumer with its innovative centre-filled format and high-quality packaging.
In an interview, Swati Bhattacharya, Chief Creative Officer, FCB Ulka, said that:
“The story beautifully captures the idea of ‘Everyday Chocolate Cravings’, and also establishing Dark Fantasy as a superior and unique alternative during Meetha occasions. Alia plays a character of a girl addicted to chocolates and Dark Fantasy, which gives you an irresistible chocolate experience.”
The company made Alia Bhatt its brand ambassador in 2019 and the actress has appeared in many of its ads. Its commercial ad showcases how the brand aspires to position itself as the ‘New Meetha’, which people can take pride in serving their guests. The latest Sunfeast ad “New Dark Fantasy Coffee Fills” was launched in Mar 30, 2021.
Nokia
Nokia, a renowned Finnish brand in the telecommunication, information technology, and consumer electronics industry, has a rich history dating back to 1865. It is widely recognized as one of the most notable mobile manufacturers globally. In an effort to enhance its brand image and connect with a wider audience, Nokia appointed Alia Bhatt as its brand ambassador on October 15, 2018. Since then, Alia has been featured in several captivating advertisements for Nokia, showcasing the brand’s innovative technology and its commitment to excellence.
Gionee, a prominent Chinese smartphone manufacturer, has its headquarters in Shenzhen, Guangdong. Established in 2002, the company has expanded its presence across various countries including India, Taiwan, Bangladesh, Nigeria, Vietnam, Myanmar, Nepal, Thailand, the Philippines, and Algeria. In 2013, Gionee entered the Indian market, but due to financial difficulties, it was acquired by Karbonn Mobiles in 2018. During her association with the brand from 2016 to 2018, Alia Bhatt served as Gionee’s brand ambassador, adding to the company’s marketing endeavors and promoting its products.
According to the statement by Arvind Vohra’s, the CEO of Gionee India,
“Alia Bhatt is an actor filled with enthusiasm and zest, characteristics that reflects Gionee’s beliefs”
He also added that
“the actress adds freshness to the brand and associating with the actress will help bring the brand closer to the consumers and will make the brand more relatable.”
Caprese is a popular fashion brand known for its stylish and trendy handbags. The brand offers a wide range of handbags that combine fashion, functionality, and quality craftsmanship. Since 2014, Alia Bhatt has been the esteemed brand ambassador for Caprese. Building upon their successful partnership, Caprese has joined forces with Alia to introduce the captivating Caprese Alia limited edition collection.
Alia Bhatt’s collaboration with Caprese, a renowned handbag brand, exemplifies her impact in the fashion industry. With her role as the brand ambassador, Alia has effectively showcased and endorsed Caprese’s chic and trendy handbags, which resonate with her own impeccable sense of style.
Conclusion
Alia Bhatt’s association with various top brands has solidified her position as one of the most sought-after brand ambassadors in the industry. From renowned fashion labels to leading technology companies and beloved consumer brands, Alia has effortlessly showcased her versatility and influence across a wide range of sectors. Her charismatic presence, relatability, and exceptional talent have made her the perfect choice for these brands to connect with their target audience and enhance their brand value. With each endorsement, Alia has demonstrated her ability to bring authenticity and charm to every campaign, leaving a lasting impact on consumers. As Alia continues to soar in her career, we can expect to see more exciting brand collaborations and further expansion of her endorsement portfolio.
FAQs
Who is Alia Bhatt?
Alia Bhatt is a British-born Indian actor and singer that works predominantly in the Bollywood industry.
What is the brand value of Alia Bhatt?
Alia Bhatt’s brand value is estimated to be around $25 million in 2023, equivalent to 204 Crore in Indian rupees.
What are the top brands endorsed by Alia Bhatt?
The main brands endorsed by Alia Bhatt are Gionee India, Philips, Frooti, Sunfeast Dark Fantasy, Flipkart, Manyavar, Lays, Uber Eats, Make My Trip, Blenders Pride, and Aurelia.
What are the other brands endorsed by Alia Bhatt?
The other brands endorsed by Alia Bhattare Caprese, Bluestone, Standard Electricals, Fruity Fizz, Coca-Cola, Frankfinn, Nestle Fruita Vitals, Fuji Instax, LUX, among others.
How much does Alia Bhatt charge for brand endorsement?
Alia Bhatt is known to charge over Rs. 1 to 2 crore per day for endorsements.
What is the net worth of Alia Bhatt?
The net worth of Alia Bhatt is 299 Crore INR in 2023.
Has Alia Bhatt contributed to the success of the brands she endorses?
Alia Bhatt’s association with the endorsed brands has undoubtedly contributed to their success. Her popularity, acting skills, and relatability to the target audience have helped in increasing brand visibility, attracting customers, and creating a positive brand image.
How has Alia Bhatt’s brand endorsements impacted her fan base?
Alia Bhatt’s brand endorsements have played a significant role in expanding her fan base. Through her association with diverse brands, she reaches out to a wider audience, including fans of those brands.
When it comes to tour and tourism, MakeMyTrip holds a leading position in the market. The very popular Indian travel company, MakeMyTrip, launched in the year 2000. Ever wondered how this company makes money? Or how its business model is designed? Well, in most simple words, the business model of MakeMyTrip entirely revolves around the online travel services it offers.
MakeMyTrip provides the facility of booking tickets for holidays, flights, busses, cars and trains. This travel company has made booking tickets very convenient for Indians. Also, it has improvised the travel conditions and arrangements in India.
In this article, we have discussed the business model of this amazing travel company- MakeMyTrip and how it makes money. So, let’s get started!
MakeMyTrip is a very famous Indian travel company, established in 2000. The company provides some very amazing online travel services and offers. With MakeMyTrip, you can book tickets for flights, hotels, buses and many more.
This famous travel company was founded by Deep Kalra. The company directly communicates with the customers through its verified online platform and deals with all customers’ concerns related to travelling. In other words, MakeMyTrip is the perfect guide for you to plan your vacation.
MakeMyTrip owns around 30+ franchised stores along with 14 different stores across 28 cities. In the year 2012, the company developed and launched its mobile application for its customers that provides over 10 lakh routes all around India. MakeMyTrip has made travelling super cool and convenient for the Indians by helping them in all aspects of travel requirements.
Key services of MakeMyTrip
MakeMyTrip provides various beneficiary services for its customers. Some of them are booking tickets for any sort of travel media such as flights, trains, buses or many others. Besides this, booking tickets for hotels, hire cars, and holiday packages, etc.
Apart from this, there are many third-party services also available such as travel insurance, Visa and many others, especially for travelling in any other country.
There isn’t any specific group that MakeMyTrip separately focuses on. The travel company focuses on different groups with different specifications and segments. It attracts all kinds of age groups and genders. Although the company does prefer customers who have a vivid connection with the internet.
Where does MakeMyTrip operate?
MakeMyTrip is an India-based travel company but the company has expanded itself into foreign countries as well such as America, UAE and many others. MakeMyTrip has well-functioning offices in New York, Bangkok, Dubai, Kaula, Singapore, Phuket and many others.
Business Model of MakeMyTrip
The business model of MakeMyTrip is very strategic and mainly based on customer service. MakeMyTrip provides the audience with great offerings and also, facility to book tickets.
India, being the fastest-growing digital travel agency that basically benefits brands like MakeMyTrip in making them a strong contender in the global market. And for this, their business model entirely strategies the marketing, price, name, promotion and location. The company provides satisfaction to its customers through its amazing customer-centric services.
Apart from this, MakeMyTrip provides its services at affordable pricing rates. MakeMyTrip provides an e-marketplace that is basically available for a huge range of audiences across the world.
The company promotes its services and offerings through electronic banners on television commercials, websites and various other channels. Also, it promotes through offline retail stores.
Today, MakeMyTrip has become an elite brand and has great strategic planning including various marketing schemes and campaigns.
What is unique about the business model of MakeMyTrip
MakeMyTrip is way beyond just creating the most amazing experience for customers. In the competitive marketplace, MakeMyTrip offers the facility of customer testimonials that give strong feedback on the company’s customer service managers. And the great customers’ experience is what favours the company most.
In addition to this, MakeMyTrip works on various tactics and technologies to improvise its products and services. This brings out a great additional advantage to the company, especially over its audience. Along with this, MakeMyTrip provides an advanced place to its retail stores for showing the company’s products.
MakeMyTrip has its major revenue source from the fee it charges over the online bookings. Although the company provides the most affordable flight tickets, that’s what attracts the customers more. They do this by purchasing the tickets from the private airlines by a huge number and they then reduce the charge and sell these tickets to the customers and earn a good extra commission fee.
MakeMyTrip earns huge profit through the flight tickets but as there aren’t many options available with the trains that’s why they did not offer this service over train tickets. The company has over 5000 to 10,000 registered hotels and around 1000 registered busses.
Apart from this, the major source of revenue is from marketing of various companies like Tata, Kingfisher, SpiceJet and many others. They also earn revenue by advertising holiday packages of various hotels on their website.
Conclusion
MakeMyTrip is known as the leader in the travel market in India. The company follows the Business-to-consumer digital business model. It is amazing with its services and products, both online and offline platforms. The travel market in India has grown at the rate of 40% and a huge market share is taken by MakeMyTrip.
This clearly shows that the company has its marketing strategies very effective and efficient. MakeMyTrip earns a good amount of revenue and has a strong marketing position. Stay tuned for more content!
FAQ
Who is the founder of MakeMyTrip?
MakeMyTrip was founded by Deep Kalra in 2000.
What is the revenue of MakeMyTrip?
The revenue of MakeMyTrip was 163 million U.S. dollars as of 2020.
Who are the competitors of MakeMyTrip?
MakeMyTrip’s top competitors include Flight Centre Travel Group, Treebo, TravelTriangle, Yatra and ClearTrip.
What do you mean by the term Acquisitions? On what metrics the company acquires other companies? Is acquiring other competitor companies legal? Which are some of the latest acquired companies? Interesting isn’t it?
According to Investopedia, the definition of Acquisitions is as follows-
An acquisition is when one company purchases most or all of another company’s shares to gain control of that company.
Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval. Some of the parameters needed to be checked before acquiring a company. These metrics should be followed before evaluating an acquisition- Financial value of the company, Asset value of the company, Possible resale value of the company, and its assets.
Read this article to know more about the common questions related to startup acquisitions. We have listed down some of the latest and deal-breaking acquisitions in the Indian Startup Ecosystem.
India, the 3rd largest startup hub in the world is home to many new startups. Every other day we hear about new startups coming up in India. With all these new startups coming up every other day, the competition increases. This leads to acquisitions. The strong prey on the weak or the potential competitor. Recently, the Walmart-Flipkart merger in mid-2018 is the first breakthrough in the minds of many. From a country’s M&As (mergers & acquisitions) viewpoint, this acquisition has been a milestone and still has an ecosystem impact. If the sale was the horse rider or the fact that the ecosystem was more M&A safeguarded, the overall fusions and acquisitions this year have decreased.
As we approach the mid of 2021, there are sudden reports of potential acquisitions and exits in the Indian startup ecosystem. Some of India’s largest startups have made many acquisitions to grow their footprint, grab a larger market share or endure growing competition from competitors, including Tata Motors, Zomato, Snapdeal, Flipkart, and others.
1. Walmart acquires Flipkart
Flipkart and Walmart Logo
With the American retail giant investing 16 billion worth, Walmart‘s takeover of Flipkart is the first-ever in India. But this acquisition was not the country’s first major takeover we saw. Here is a list of some of India’s major fusions and acquisitions. In 2018, Walmart purchased Flipkart 77 percent for $16 billion. This makes it India’s largest acquisition.
In April 2015, Snapdeal acquired the Freecharge smartphone recharge service. It was valued at $400 million for the cash plus equity deal and the largest takeover in Indian internet business history. The partnership brought in about approx. $1.1 billion in financing from Snapdeal, and $120 million from Freecharge in particular. Freecharge remained a separate company after the takeover, allowing Snapdeal to grow its digital trading ecosystem. Snapdeal has had several major acquisitions last year: In the center of this move, China’s giant Alibaba took an interest in Indian eCommerce in Snapdeal.
As announced on March 26th, Tata Motors purchased the Ford Motor Company’s Jaguar Land Rover companies from the company for a net amount of $2.3 billion. In the Jaguar Land Rover pension plans, Ford contributed around US$600 million. Mr. Ratan N. Tata, Chief Operating Officer of the Tata Sons and the Chief Financial Officer of the Ford Motor Group, Don Leclair and Mr. Lewis Booth, Executive Vice-Chairman of the Ford of Europe Motor Company and Mr. La Jaguar La Tata Motors attended this ceremony at the Gaydon headquarters at the Jaguar Land Rover.
In May 2014, after months of rumors, India’s leading e-commerce company Flipkart acquired a trendy rival Myntra, a development that had to do with the increasing presence of Amazon in India. None of the parties verified the acquisition’s exact valuation, but sources placed the cash and equity transaction between 300 and 330 million dollars.
Flipkart launched as a supermarket in 2007, offering apparel and electronics in all categories. It also offers furnishings and white products. The change is anticipated to help Flipkart reinforce its clothes collection and contend with Amazon and Snapdeal more vigorously. With his co-founder and CEO Mukesh Bansal joining Flipkart and running the apparel company, Myntra will continue to run as an autonomous entity.
Ola, one of India’s largest ride-hailing operation, acquired TaxiForSure for $200 million as a smaller, but value-centric, cash and equity acquisition in March 2015. Ola’s footprint in the country has been extended by adding TaxiForSure’s 15,000+ fleet onto its network across 47 cities. In October 2014, Ola raised SoftBank $210 million in addition to the 41,5 million dollars it raised earlier, adding over a quarter-billion dollars in overall financing in 2014. When TaxiForSure was acquired, it had 15,000 vehicles in 47 cities on our network a few months after the launch of Ola in January 2011. In India, it has recently been an upright battle between Uber and Ola, who have joined Didi Kuaidi, GrabTaxi, and Lyft globally.
In January 2015, Zomato purchased a 50 million dollar US competitor, Urbanspoon, at what was one of the highest offshore transactions for an Indian startup. The purchase marked Zomato‘s visit to the US, Canada which Australia, and took over 22 countries around the world. The takeover signals the entrance of Zomato in the USA. This is the sixth and largest purchase of Zomato in the last six months. The purchase will rise from 300,000 to 1.000,000 restaurants globally more than three times the inventory of Zomato’s Restaurant. In the coming months, Urbanspoon will pass onto Zomato.com, and the Zomato software will be used by all Urbanspoon app users. Zomato increased the overall amount of venture funds raised by the firm to $113 million from Sequoia, Knowledge Edge, and Vy Capital in November.
A leader among India’s travel reservation sides was the Nasdaq-listed MakeMyTrip, a pioneer in Indian tourism reservation – which was funded by investors such as Helion Venture Partner, 500 Partners, and Blumberg Capital at the last minute. Mygola, founded by IIT Mumbai in 2009, says travelers can create customs journeys in 15 minutes by using Bapna and Prateek Sharma. It has up to 5000 installations in the Google Playstore on Android and is present in 16 cities worldwide. The acquisition happens as Indian travel is heating up, as an investment in 2015, for the most part, early-stage, has crossed 71 million dollars, compared to 55 million dollars in all of 2014 (about 440 crores).
Let’s discuss some of the frequently asked questions (FAQ’s) related to startup ecosystem..
What do you mean by the term Acquisitions?
An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval.
On what metrics the company acquires other companies?
These metrics should be followed before evaluating an acquisition- Financial value of the company, Asset value of the company, Possible resale value of the company, and its assets.
Is acquiring other competitor companies legal?
Acquisitions, which are very common in business, may occur with the target company’s approval, or in spite of its disapproval.
Which are some of the latest acquired companies?
Larsen and Toubro Ltd (L&T) gained a controlling interest in Mindtree Ltd, raising its stake to 60% in the Bengaluru-based company on 27 June 2019 and successfully concluding India’s first hostile takeover of an IT company.
How do startups get acquired?
The startups that last usually get acquired for their market share before they hit those numbers. Intellectual property is the most common way to build a defensible product. In fact, many startups with a proprietary product get acquired before they even take their solution to the market.
How long does a startup acquisition take?
Corporate mergers and acquisitions can vary considerably in the time they take to be completed. This length of time may span from six months to several years. There are a number of individual steps that need to be completed successfully by two public companies before they are legally combined into a single entity.
Conclusion
Startup acquisitions happened in the past and will keep happening in the future. If there is a slight possibility that the competitor can be a problem in a long run then acquisitions will happen for sure. Investors will keep looking for further IPOs, new firms and acquisitions from publicly traded companies in the subsequent year as the number of acquisitions, and their scale in India is growing. Up until now, they have relied primarily on other startup acquisitions. As the Indian startup ecosystem continues to expand and draw more foreign interest, the value of M&A transactions in the country can only be projected to rise in the coming years accordingly.
Work, assignments, and stress. These three words take up significant time in a millennial’s day. And it’s only going to get more hectic. As a result, most of us and not just the millennials yearn for that much needed break. A long trip to Goa or visiting monuments usually does the job of shedding some stress. This itself begs for an answer to how one could reach their destination. How does one avoid trip agents who make profits from your travel plans, leaving with you a lighter wallet?
Luckily, Deep Kalra, an alumnus of the prestigious Indian Institute of Management has made planning trips easier using his brilliance and ingenuity—MakeMyTrip.
Deep Kalra is an Indian businessman and Founder of MakeMyTrip. An ambitious and talented man, who has over 27 years of work experience in e-commerce, sales, marketing, corporate banking, financial analysis and senior management roles.
“Tough times teach you the most,” he says
Deep Kalra – Founder, MakeMyTrip
He tells budding entrepreneurs to consider life as a marathon. An idol both on and off field, Deep’s life is all about hard work and determination. Deep has been instrumental in making MakeMyTrip India’s number one trip advisor.
He holds a Bachelor’s degree in Economics from St. Stephen’s College, Delhi University, India, and a Master’s degree in Business Administration from the Indian Institute of Management, Ahmedabad, India.
Deep Kalra – Initial Struggles
Deep started with ABN Amro Bank. After serving for three years, he decided to start his own venture, and brought AMF bowling. This was an attempt to launch the ten pin bowling revolution in India, but couldn’t take off. Deep had to go back to the corporate sector and joined GE capital. His work with AMF bowling wasn’t successful because his boss who used to live in the United States did not provide any sort of mentorship. Even after opening 200 lanes, bowling couldn’t strike the right chords with the Indian crowd.
The internet sector was on the rise during the mid-90s and web sites like Yahoo! and Google were touching new heights. Deep Kalra decided to use the internet as a catalyst for a new business.
Deep Kalra’s MakeMyTrip Ideation
MakeMyTrip Logo
Deep’s wish was to kick out nosy and stingy travel agents and streamline the travel and holiday planning industry so that travelers found it easier to plan cost effective trips. After a backing of 2 million USD from eVentures and co-founders like Keyur Joshi, Rajesh Magow and Sachin Bhatia, he launched one of the most popular websites in today’s time—MakeMyTrip.
Exploration and wanderlust are on every person’s bucket list. The thrill and excitement of venturing beyond one’s nest is what nearly each one of us longs for. With the introduction of MakeMyTrip, these yearnings have become a reality. Initially the MakeMyTrip team chose to serve only India-United States trips. But destiny had other plans as the dotcom bubble burst two days after MakeMyTrip began operations; the team lost its funding in entirety. The situation was so bad that Deep had to cut down his team size by half and reduce the renumeration of executives in his company by half as well.
MakeMyTrip was one of the few companies to survive the bubble bust. Later, there was a steady rise in the marketing value of MakeMyTrip. Deep and MakeMyTrip’s breakthrough came after IRCTC enabled online booking of tickets. This meant MakeMyTrip’s business model concurring with IRCTC’s plans. The outcome from this new way of business raked in profits for the company, and Deep decided to widen his portfolio and his brand began to offer trip services across India. The tie-up with IRCTC worked wonders.
This boosted the company’s popularity and the number of daily visitors accessing MakeMyTrip’s website increased dramatically. Every 1 in 12 flight tickets was now booked from MakeMyTrip! With an army of 2,000,000 customers, they crossed the 1000 crore INR mark in the year 2008. In the same year, the company recorded profits of 5 million USD. A major turnover for a company that had faced the wrath of the dotcom crash. This established Deep Kalra and his team as entrepreneurs.
Perhaps, MakeMyTrip’s biggest achievement was its listing in NASDAQ in 2010. This blew off its competitors and made it a top gun.
Under Deep’s leadership, the bridge between the Indian and the U.S. stock exchange narrowed. This is no easy feat and commends respect!
His company (MakeMyTrip) was recognized as the “Best Travel Portal India” by World Travel Awards in 2013 and 2014.
Listed as “The Best Companies to Work For” by Great Place to Work Institute during 2010, 2011, 2012,2013.
Deep Kalra is also a member of CII’s sub tourism committee.
He is the chairperson of NASSCOM Internet Working Group.
Deep Kalra’s net worth is estimated around $136 Million as of 2020
Deep Kalra as An Inspiration
Deep Karla shows how to navigate through tough times. His education credentials coupled with his achievements have established him as a success story who brought a change in India. Recovering from any drastic event at a global scale is no piece of cake, requiring meticulous planning, strategy, execution and some luck. MakeMyTrip was able to do it. After IRCTC brought the online services, Deep made the best out of the opportunity at hand. MakeMyTrip has a current market cap of more than 2 billion USD. Deep Kalra’s name shall be embellished in gold on the list of India’s prominent entrepreneurs!
Needless to mention, Coronavirus has affected every aspect of human life. To contain the spread of the virus, many precautions are being taken at different levels. Many countries like India have declared lockdown to cope with the situation. While the delivery of essential services has been allowed, the supply chain is still struggling to cope with the security measures. India’s 21-day lockdown may have thrown up an opportunity for online grocers to shine, but the rest of the industry sectors is drowning in the Covid-19 tsunami.
But beyond this, the real economic impact from the coronavirus pandemic will come in the weeks and months to come. Many large companies are also helpless in this time, yet they are trying to manage things. But this pandemic has left small businesses & startups with no more option but to downsize & layoff.
Layoffs and downsizing in the startup ecosystem are set to accelerate as businesses take a hard look at high operational costs and dipping demand in an uncertain environment made worse by the Covid-19 pandemic. Also, India has banned entry of all foreign nationals till May 17 with exceptions, such as diplomatic visa. This means that international firms have to put their business plans on hold.
Coronavirus have some far-reaching consequences – besides killing human beings, this deadly virus can result into unprecedented economic recession. However this will have more impact on startups than on bigger firms. Last couple of quarters has seen startups laying off thousands of employees.
Indian startups and SMEs(small and medium-sized enterprises) have begun evaluating their options to cut spending as demand for their products and services has taken a massive hit due to the Covid-19 outbreak as startups are finding it difficult to raise funds.
Nearly, 71% of businesses have seen reduced demand. The firms are also looking to cut spending on marketing and advertising, tech infrastructure, commercial rentals and employee costs to survive during this tough time.
Layoffs increased in Startups since COVID-19 Outbreak
Many sectors are greatly affected due to COVID-19. The sector, especially startups, is likely to see more layoffs if the virus outbreak continues to cause havoc. In this, travel industry, startups, IT firms seem to be the first casualty. For India’s venture capital industry, 2019 was a milestone year with $10 billion deployed into overall startups, that saw a 55% jump from 2018, according to Bain & Company, highlighting how the industry grew amid global economic uncertainty.
But now this situation is taking another turn; layoffs have already started happening. Rituparna Charkraborty, co-founder, Teamlease Services, a staffing firm, told that as demand slows down, it will impact startups and might result in layoff. She explained that unlike bigger firms, they don’t have deep pockets and have to be frugal.
Travel Startups
India’s biggest travel portal: MakeMyTrip has decided to lay off 350 employees as its business has been affected severely due to the Covid-19 pandemic. MakeMyTrip has told employees that MMT has analysed impact closely and has spent considerable time figuring out the path to business recovery. Founder Deep Kalra and CEO Rajesh Magow sent out a letter to all employees informing them about the layoff.
Kalra and Magow have writtten in their letter, “What’s evident is that the impact of COVID-19 crisis is going to be long drawn for us. It’s unclear when traveling will become a way of life, as it was pre-COVID-19. We are living through extraordinary times that have impacted individuals, communities, businesses, countries and our world at a magnitude unknown before and there is no let-up in sight.”
MakeMyTrip promised to offer support to laid-off employees compensation including Mediclaim coverage for individuals and their families till the end of the year, leave encashment, gratuity, retaining the right to exercise part of RSUs as applicable. Employees can keep the company laptops and will be provided outplacement support apart from salary payments as per their notice periods.
At the same time, MakeMyTrip’s associated companies like GoIbibo and Redbus can fire 60% of their contractual employees due to decreasing demand. There are 650 such contractual employees in these three companies. Majority of them are working in customer service and backend support.
Travel & Hospitality service Startups
Airbnb also plans to lay off nearly one-fourth of its employees. The 25% of the company includes nearly 1,900 employees who will be laid off. According sources, the news would be broken to employees by CEO Brian Chesky.
CEO of Airbnb,Brian Chesky stated in his memo, “Airbnb’s business has been hit hard due to COVID-19, with revenue this year forecasted to be less than half of what we earned in 2019. We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill.”
Chesky told that prior to the layoffs, Airbnb had 7,500 employees. Airbnb will halt projects related to hotels, a transportation division and luxury stays for some time. But Chesky has assured that laid off employees would get some facilities from company’s side.
Chesky said that U.S. employees laid off will receive 14 weeks of base pay plus an additional week for every year they worked at Airbnb. The company will also provide 12 months of healthcare for laid off U.S. employees. He also mentioned that May 11 will be the last work day for impacted Airbnb employees in the U.S. and Canada.
Similarly, around 5000 Oyo employees will be laid off across the world due to coronavirus outbreak. Oyo Hotels is laying off staff in the U.S., China and India as the company tries to find its way to profitability in turbulent times.
Oyo expanded rapidly after its founding in 2013 and reached a valuation of $10 billion but investors have soured on money-losing businesses after WeWork’s meltdown and SoftBank has pushed portfolio companies to prioritise profitability.
The travel and hospitality service company TravelTriangle has laid off about 50% of its workforce in the past 10 days. “TravelTriangle has fired about 250-300 people since March 20,” said one of the sources. Impacted employees are from operations, marketing, customer support and business development functions.
In addition to this list, corporate travel planning company TripActions, that was valued at $4 billion last year, laid off 350 employees via Zoom. The reports state the layoffs consist of about one-quarter to one-fifth of the total company. The company said in a statement, “We’ve cut back on all non-essential spend and made the very difficult decision to reduce our global workforce due to pandemic.”
Online Food Delivery startups
On May 18, Bengaluru-based food delivery startup Swiggy announced that it will lay off 1,100 employees and shut down some of its businesses as the coronavirus continues to take its toll. The core food delivery business has been severely impacted and will stay impacted over the short term.
Co-founder & CEO of Swiggy, Sriharsha Majety stated, “While we are very fortunate to have raised capital just before Covid-19 hit and have sufficient runway today, it is incredibly important to prepare for worse scenarios in the macro environment and make sure we are protected.”
Swiggy will give at least three months of salary to all impacted employees. For every year spent by the employee, they will be paid an additional month’s salary. Along with this, Swiggy plans to provide medical insurance for impacted employees until 31 December, 2020, as well as career transition and access to free learning on Linkedin for upskilling. Moreover, it has allowed the staff to retain office laptops and communication allowance for the next three months.
Similarly, Gurugram based Food delivery platform Zomato decided to layoff 520 employees which is 13% of its workforce. Also it will temporarily cut salaries of the rest as the Covid-19 pandemic and resultant nationwide lockdown has hit its businesses, Zomato’s Founder & CEO Deepinder Goyal said in the email on May 15.
Deepinder Goyal said in his mail, “Our business has been severely affected by the COVID lockdowns. A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg. I expect the number of restaurants to shrink by 25-40% over the next 6-12 months.”
As compensation, the laid-off employees will receive half of their salaries along with health insurance for the next six months or till they find another job. Goyal also said that the company will provide impacted employees outplacement support to find jobs.
Cab Services Startups
Uber, American ride-hailing Mnc, announced on May 6, that it will lay off 3,700 employees which is about 14% of its total workforce. Also CEO Dara Khosrowshahi will forgo his base salary for the rest of the year as COVID-19 has crushed the travel industry because of lockdowns to stop the spread of the virus.
Uber has been hit hard by the coronavirus pandemic. Uber’s global gross bookings are down by 80%, according to reports. The company is set to lay off up to 700 people that is about 25-30% of its overall workforce in India as per sources. Uber has over 2,000 employees in India. The decision has been almost final and likely to be announced when lockdown will get lifted.
On May 18, Uber’s CEO, Khosrowshahi told employees Uber will lay off an additional 3,000 employees and close 45 offices globally. As part of the layoffs, Uber is expected to pay up to $145 million to employees via severance and other benefits, and up to $80 million in order to shut down offices, according to a filing with the SEC.
CEO of Uber, Dara Khosrowshahi said, “We are looking at many scenarios and at each and every cost, both variable and fixed, across the company. We want to be smart, to move fast, to retain as many of our great people as we can, and treat everyone with dignity, support and respect.”
On May 20, Indian ride hailing unicorn Ola said that it will lay off 1,400 staff which makes about 35 % of its workforce due to the uncertainty caused by the coronavirus pandemic. Ola’s CEO Bhavish Aggarwal said in a note to employees that COVID-19 has led to a drop of 95 per cent in Ola’s revenues in two months. The impact of the crisis will be long-drawn for Ola. Every affected employee will receive a minimum financial pay of 3 months of their fixed salary.
Similarly, other Cab service companies are also facing the heat as more people avoid taking public transport and cabs and have started working from home. Pravin Agarwala, co-founder of The Better Place, a blue-collar management firm, said cab aggregators are already witnessing drop in demand and this drop would go up to 30-40 % if the same situation continues.
Drivezy, a self-drive car rentals platform, has also cut part of its workforce to stay afloat, according ET’s report. Moreover, B2B platform Udaan has cut back on ground staff over the last few months at its pharmaceuticals and fresh division, according to four employees at the firm.
Scooter Rental Startups
Electric-scooter startup Bird said it is laying off nearly a third of its workforce to survive damage done to its service by the coronavirus pandemic. Bird has already paused shared scooter operations in many markets around the world and drastically cut spending and is now “laying off” 30 % of its workforce, founder and chief executive Travis VanderZanden said in a memo to employees.
In the same way, scooter sharing app Bounce has begun laying off hundreds of employees across functions and levels. At Bounce, the job cuts are across verticals and levels, operations staff, call centre, and technology and product according to reports.
Number of Layoffs is likely to Increase more due to Covid-19
Startups are Terminating the Hiring plans
Apart of layoffs, some of India’s top companies have also stopped hiring plans and are moving talent internally. Meanwhile recruitment firms have announced that processes of hiring have dropped by 50%, as interviews are being cancelled. Meanwhile recruitment agencies are informing that Indian startups also have cancelled upto 50% of all hiring and interviews with layoffs going on parallel.
Bengaluru-based firm Rupeek, which operates an online marketplace for gold loans, has terminated a human resource contract with Aasaanjobs, a recruitment marketplace for blue and grey-collar jobs. This will allegedly indirectly impact 600 jobs. Rupeek told it won’t renew the contract with the human resource contractors and reduce the number of outsourced staff in the current economic environment.
Rupeek said in a statement. “Considering current business and economic environment, we had to take the unfortunate decision of not renewing our contract with our human resource contractors & the consequent reduction in the number of outsourced staff. We regret the unfortunate timing of this event. To protect their interests, we are offering a generous severance package over and above contractual dues.”
Kamal Karanth, co-founder of Xpheno, a staffing agency said, “Almost 50% of ongoing interviews, new requirements, on-boardings have stopped for the last two weeks now, particularly in the IT sector.” He also added that close to 25 captives opened in India last year and hired close to 5,000 people. However, this number is likely to come down as the coronavirus has made the execution a challenge.
According to experts, most firms have delayed the hiring process by 4-6 weeks. Appraisal hikes may also see a 2-3 % drop as well this year. In addition, with sectors across under stress, performance pressure will also be high, leading to more layoffs, said the experts.
Due to this laying off process going on all over the world, the United States, Europe, China and India are experiencing slowing economic activity that analysts predict will likely last through at least two quarters. India’s stock market has already taken a beating over the last week, and the pressure has now trickled down to private markets as well. India’s GDP growth slowed from 2.5% to 5.3% since the crisis began.
To add to that, the coronavirus outbreak has emerged as a new threat to the global economy and Indian manufacturing. India is currently in its fourth week since the first batch of Covid-19 positive cases were identified. The startup ecosystem in India has taken a major hit and entrepreneurs are trying to figure out how to run their operations by cutting costs in trying to stay afloat.
