MakeMyTrip to Buy Back $3B Stake from Trip.com

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In a bold move that rattles the status quo of India’s travel tech landscape, MakeMyTrip (MMT) is clawing back a massive $3 billion stake from Chinese giant Trip.com Group. The buyback, expected to close by early July 2025, isn’t just a corporate shuffle—it’s a statement. Even after the deal, Trip.com will cling to a 16.9% stake, still making it MMT’s biggest minority investor. But make no mistake—control is shifting. This power play comes right after MMT raised a staggering $3.1 billion, clearly earmarked to fund the reclamation of its Class B shares from its longtime Chinese backer.

This isn’t just about stock—it’s about sovereignty. In a climate where Indian startups are growing weary of foreign entanglements, especially from geopolitical adversaries, this repurchase rings loud. Add to that recent flare-ups, like EaseMyTrip’s cofounder firing shots about alleged data risks tied to Chinese ownership, and the timing gets even more loaded. MMT has, of course, waved off those accusations, but the context is thick with tension.

Zooming out, this isn’t just a MakeMyTrip story—it’s about a travel tech sector that’s transforming fast. MMT is gearing up for war: investing in AI, stretching its reach across India, and bracing against rising threats like EaseMyTrip and Yatra. Meanwhile, Trip.com isn’t completely out; their remaining stake keeps the door open for future collaborations—think tech synergies, tourism exchanges, and strategic chess moves across Asia. This deal? It’s a thunderclap in the travel industry.

1. Introduction

MakeMyTrip buying back a $3B stake from Trip.com isn’t just another corporate maneuver—it’s a seismic shift. This transaction rips up old rulebooks about foreign ownership and resets the narrative in India’s hypercompetitive OTA space. We’ll dig into the mechanics of this stake shuffle, the DNA of MMT, the noisy battlefield of Indian travel tech, and what this saga means for the future of startups in the space.

2. MakeMyTrip: Overview and Business Model

2.1 Company Background and Founders

Born in the dot-com dust storm of 2000, MakeMyTrip was the brainchild of Deep Kalra, who saw opportunity where others saw dial-up. Along with co-founder Rajesh Magow—now CEO—MMT transformed from a scrappy travel portal into the country’s go-to OTA juggernaut. They didn’t just ride the digital wave—they helped build the surfboard.

2.2 Working Model

MMT runs as a full-stack OTA behemoth. Think of it as a digital Grand Central Station for travel—flights, hotels, buses, trains, packages—all under one virtual roof. It’s less about selling tickets, more about curating seamless travel experiences. MMT pulls revenue from commissions, dynamic pricing algorithms, and bundling perks like insurance and 24/7 support.

2.3 Revenue Model

The money engine? It’s diversified. MMT earns through commission-heavy transactions but also leans on ads, premium subscriptions, and juicy tie-ups with banks (hello, co-branded cards and travel deals). It’s a well-oiled machine, humming with cross-sell opportunities that turn clicks into cash.

3. Funding and Financial Milestones

3.1 Historical Funding Rounds

Over its two-decade journey, MMT has pulled in nearly $4 billion from a parade of global VCs and strategics. Trip.com’s entry as a major investor gave MMT wings, and the 2010 Nasdaq IPO cemented its global swagger. This wasn’t just funding—it was validation.

3.2 Recent Capital Raise

June 2025 saw MMT swinging for the fences, securing $3.1 billion via senior notes and equity deals. No ambiguity here—the money was earmarked for one thing: reclaiming control. This infusion supercharges their plans for aggressive tech upgrades, louder marketing, and geographic conquest.

4. The MakeMyTrip and Trip.com Transaction

4.1 Details of the Stake Buyback

This isn’t a minor transaction—it’s a strategic U-turn. MMT is buying back a $3 billion chunk from Trip.com. Even after the sale, Trip.com isn’t vanishing. Its 16.9% residual stake is still hefty, but the power dynamics have shifted decisively back to Gurugram.

4.2 Strategic Importance

This is about autonomy, plain and simple. With geopolitical eyes watching, MMT needed to clear the fog. The buyback doesn’t burn bridges—Trip.com still has skin in the game—but it plants the flag firmly in Indian soil. The 180-day lock-up clause gives breathing room, ensuring no sudden jolts.

4.3 Industry Context

India’s OTA market is red-hot. Competitors like EaseMyTrip and Yatra are sharpening their claws. MMT isn’t playing defense—it’s going on the offensive. With deep pockets and tech bets, they’re eyeing dominance, not survival.

5. MakeMyTrip’s Role in the Indian Travel Tech Industry

5.1 Market Position and Competitors

MMT sits on the throne, but challengers are circling. EaseMyTrip and Yatra are nipping at its heels with price cuts and feature bombs. MMT’s edge? Scale, cash, and experience. But to stay king, it must innovate relentlessly.

5.2 Industry Growth Trends

India’s OTA space is growing like wildfire—15% CAGR projected through 2030. Rising middle class, smartphone penetration, and post-pandemic wanderlust are fueling the fire. The next five years will separate the visionaries from the laggards.

6. Problems Addressed by MakeMyTrip

Let’s not overcomplicate this—MMT makes travel less painful.

• One-stop booking chaos, tamed.
• Smart pricing that actually saves money.
• AI suggestions that don’t suck.
• Cancellations and refunds made less rage-inducing.
• Fixing the maddening last-mile travel gaps that plague Indian journeys.

7. Synergies and Future Outlook

7.1 Technology and Data Sharing

MMT and Trip.com can still play nice. Shared AI tools and market insights could make for some killer upgrades in personalization and efficiency.

7.2 Cross-Border Tourism

China to India tourism is a sleeping giant. Trip.com’s continued involvement could unlock doors that haven’t even been knocked on yet.

7.3 Market Consolidation and Growth

MMT isn’t just defending turf—it’s eyeing new territory. Expect more AI integrations, loyalty plays, and regional expansion. Margins are tight, but power moves like this buyback widen the runway.

8. Background on the Dispute and Security Concerns

One month before this news broke, EaseMyTrip’s Nishant Pitti lobbed a grenade—accusing MMT of exposing Indian soldiers’ data to China. MMT clapped back hard, calling it baseless and malicious. Regardless of who’s right, the incident spotlighted the rising scrutiny of foreign hands in critical digital sectors.

9. Learning for Startups and Entrepreneurs

There are thick lessons buried in this move:

1. Control Matters: Don’t get dazzled by foreign money at the cost of local leverage.
2. Trust Is Currency: If your users don’t feel safe, your tech stack is meaningless.
3. Smart Partnerships Beat Isolation: Trip.com’s reduced stake still offers value.
4. Stay Fluid: Your business model should evolve faster than your competitors’ campaigns.
5. Timing Is Everything: Strategic capital moves can reset your industry status overnight.

Conclusion

MakeMyTrip’s $3B buyback from Trip.com is more than financial housecleaning—it’s a strategic reclamation of power. In a market bristling with rivals and shadowed by geopolitical unease, MMT has chosen clarity over compromise. The deal balances autonomy with alliance and signals a new chapter for Indian travel tech. For every startup watching from the sidelines, this isn’t just a headline—it’s a blueprint. Be bold. Be strategic. And when the time is right—buy back your future.

About Foundlanes

foundlanes.com is more than just a tracker—it’s the nerve center of India’s startup energy. Covering everything from funding frenzies to game-changing M&A, it tells the real stories that matter. MakeMyTrip’s repurchase saga is just one example of how Indian startups are rewriting the rules. With its sharp focus on sectors like travel tech, this platform fuels the insights entrepreneurs and VCs need to stay ahead.