MakeMyTrip, the dominant online travel agency in India, filed for an initial public offering and hopes to raise up to $100 million for geographic expansion, strategic investments or acquisitions, and technology enhancements.
Shares would be listed on Nasdaq stock market under the stock symbol MMYT.
MakeMyTrip, headquartered in Gurgaon, Haryana, India, didn't reveal any range of pricing for its IPO or how many share would be issued. Those details would come in subsequent filings with the Securities and Exchange Commission.
Philip Wolf, an independent board member of MakeMyTrip and a Tnooz board member, says "MakeMyTrip's IPO demonstrates India's continuing explosive growth, that the power of online travel knows no borders and the management team has built a world-class business."
It's been several years since there has been big-time IPO from an online travel agency and, if successful, MakeMyTrip's public offering could spur others, particularly from Asia-Pacific OTAs seeking to spread their brand.
Founded in 2000 with an initial focus on the nonresident Indian market in the U.S., MakeMyTrip launched an Indian website in 2005, and now provides access to all of India's full-service domestic and low-cost carriers, as well as major airlines operating to and from India. The OTA says it offers 4,000 hotels inside India, many hotels outside the country, Indian Railways and major bus operators.
MakeMyTrip recorded operating losses of $10.6 million and $6 million in 2009 and 2010, respectively.
When excluding service costs, MakeMyTrip attracted $31.1 million in revenue from domestic air tickets in fiscal year 2010.
It took in $8 million in revenue from hotel and package bookings, accounting for 19.8% of total revenue in fiscal year 2010, when excluding service costs.
MakeMyTrip says its strategy is to expand its hotel and package offerings, increase cross-selling, grow its travel agency distribution, better its service offerings through technology improvements, broaden its reach into new geographic markets "and pursue selective strategic partnerships and acquisitions."
Disclosure: Alongside Wolf, Tnooz chairman Frederic Lalonde is also a MakeMyTrip board member.