SAIF has divested its balance 11 per cent holdings in a series of transactions since October. The SEC filing now shows that SAIF Partners’ funds SB Asia Investment Fund II L.P., and others do not hold any shares in MakeMyTrip now.
While the value of these deals was not disclosed, according to sources quoted in a report in The Economic Times, SAIF is estimated to have raked in over $400 million on its investment in the country’s largest travel portal. The investment firm had put in about $25 million in MakeMyTrip between 2005 and 2008 and owned about 41 per cent stake in the company when it listed on Nasdaq in 2010.
Among the online travel agency’s pre-IPO VC backers, SAIF was the first to invest and is last to exit
The SEC filings also show that while SAIF has been selling its shares in MakeMyTrip , mutual funds and hedge funds including Wasatch Advisors, Capital World Investors, Janus Capital and Ruane, Cunniff & Goldfarb have been buying into the company.
In mid-October last year, MakeMyTrip agreed to buy Ibibo Group’s travel business in India for $720 million in stock, creating one of the largest travel companies in the country. The deal has reportedly shot up Gurgaon-based company’s market capitalisation to nearly $3.6 billion, based on the expected increase in its share count post the Ibibo deal. This is about 10 times estimated annual revenues of the two companies in 2016.
Prior to the deal MakeMyTrip’s market capitalisation stood at around $850 million, or less than a fourth of current levels.