MakeMyTrip raises $200 million through zero percent interest bond

MakeMyTrip reported a correction in the bookings during the last quarter of 2020 which had witnessed a steep fall following the pandemic and the subsequent lockdown earlier during the year.

It reported a quarter on quarter increase of over 180 percent during the quarter ending December 31, 2020, in gross bookings. The revenue stood at $598 million during the period under review. However, as compared to the like period of the previous financial year the number was still a fraction. It reported $1.7 billion in revenue during the fourth quarter of 2019.

"While the travel industry is in the midst of very difficult times, we are pleased with the overwhelming response to our convertible bond offering. This raise will bolster our cash reserves allowing us to meet the working capital requirements as business recovery gathers momentum and also pursue any investment opportunities in the growing Indian market. This raise at zero coupon and conversion premium of 37.5 percent reflects the appetite of global investors to invest behind strong Indian brands and businesses," said Mohit Kabra, chief financial officer of MakeMyTrip.

With the vaccination drive in full swing, people have regained some confidence and are traveling keeping the COVID protocols in mind. With work from home also becoming the new norm for most of the IT companies, many employees can be seen selecting leisure destinations to work from. So much so that even the hotels have started investing heavily in workstation to cash in on the opportunity.