In a move that has generated considerable buzz across the Indian startup landscape, MakeMyTrip is said to be in advanced talks with a consortium of global investors for what could be one of the industry’s biggest secondary share sales. According to people with direct knowledge of the matter, the primary objective is to pare down the combined stake held by Chinese internet giant Ctrip (Trip.com Group) and Tencent, which together reportedly own around 36% of MakeMyTrip.
If successful, the fundraising will not only enable MakeMyTrip to broaden its international investor base but also respond to mounting regulatory and geopolitical pressures surrounding Chinese investments in critical Indian technologies.
Regulatory Crackdown and ‘China Plus One’ Drive
The planned stake dilution comes amid a sweeping regulatory push by the Indian government to curtail Chinese influence in sensitive sectors—especially after the 2020 border tensions and subsequent national security reviews. Recent amendments to India’s Foreign Direct Investment (FDI) policy now require government approval for any funding coming from countries sharing a land border with India, with China a primary focus.
“After recent geopolitical issues, Indian startups are under pressure to diversify their funding sources,” said Shruti Lamba, a venture capital analyst at Gateway Advisors. “Reducing Chinese stakes is now seen not just as a business move, but a strategic imperative.”
What’s at Stake for MakeMyTrip and Its Investors
Ctrip initially acquired its MakeMyTrip stake through a 2016 share-swap deal with South Africa’s Naspers, while Tencent built its position through secondary market purchases and a 2020 investment round. The Chinese entities have since wielded substantial influence over MakeMyTrip’s board and strategic direction.
Industry experts say that MakeMyTrip’s large capital raise would create room for existing Chinese shareholders to exit partially or fully, facilitating ownership transfer to Western funds, sovereign wealth institutions, or public market investors. This secondary sale is expected to be executed via block trades on global exchanges, given MakeMyTrip’s secondary listing on Nasdaq.
“The transaction is both symbolic and substantial,” says Rajan Mehta, independent tech sector analyst. “It signals that Indian unicorns are now prepared to restructure ownership for strategic and regulatory reasons—even at potentially high costs.”
Market Timing and Investor Appetite
The fundraising plan arrives at a time of robust business growth for MakeMyTrip. The company reported a 26.3% year-on-year surge in revenue for the March 2024 quarter, underpinned by the rebound in travel and tourism. Its Nasdaq-listed shares (MMYT) have outperformed many global peer stocks, buoying investor confidence.
In the current round, long-term institutional investors such as Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority (ADIA), and U.S.-based private equity funds are reportedly in the mix. MakeMyTrip’s strong fundamentals and growing focus on non-air businesses, like holiday packages and rail bookings, have also enhanced its attractiveness to new backers.
Broader Implications: Indian Tech Ownership at a Crossroads
MakeMyTrip’s strategy reflects a major shift across India’s digital economy, where national sentiment, regulatory currents, and global geopolitics increasingly shape funding decisions. Other leading Indian startups—such as Paytm, Zomato, and Swiggy—have also begun tightening scrutiny around Chinese shareholdings, responding to both government nudges and market preferences.
“It’s part of a larger trend as Indian tech firms seek to align with Western capital in the face of security and compliance pressures,” said Sumeet Singh, founder of TechSutra Research. “This could spark a wave of secondary block trades across the sector this year.”
