India: SAIF Partners exits MakeMyTrip with bumper returns

Visual from Makemytrip website

Venture capital firm SAIF Partners, has exited online travel portal MakeMyTrip by selling its remaining stake in the company, according to regulatory filings.

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.

Also Read:

Nasdaq-listed MakeMyTrip valuations continue to defy gravity

MakeMyTrip to buy Ibibo Group’s India travel business for $720m

Exclusive: We see lot of consolidation, M&As in the next 12 months: Deepak Gaur, SAIF Partners

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.