MakeMyTrip has announced a USD 2.5 billion fundraising effort through a dual offering of ordinary shares and convertible bonds, aimed at significantly curtailing the influence of Chinese travel giant Trip.com Group within the company. The capital will be deployed primarily for a strategic share repurchase, bringing Trip.com’s voting rights down from 45.34% to 19.99% and reducing its board representation from five to two. The move comes in the wake of mounting geopolitical tensions, including calls to limit Chinese ownership in Indian enterprises following a recent India-Pakistan military conflict.
Strategic Capital Raise to Dilute Chinese Stake
In a bold financial maneuver, MakeMyTrip, the Gurugram-based travel services provider listed on NASDAQ, has initiated a USD 2.5 billion capital raise via a combination of equity and debt instruments. According to regulatory filings, the offering includes 14 million ordinary shares and a Concurrent Notes Offering totaling USD 1.25 billion in convertible senior notes, with an additional USD 187.5 million subject to over-allotment options.
The proceeds are earmarked for the repurchase of a portion of Class B shares previously held by China-based Trip.com, a move that substantially reconfigures the company's ownership structure.
Trip.com’s Influence to Be Significantly Reduced
Prior to the transaction, Trip.com held 100% of MakeMyTrip’s issued and outstanding Class B shares, amounting to 15.05% of all shares, but with enhanced voting rights, the Chinese firm controlled 45.34% of the company’s total voting power.
As per the share repurchase agreement signed on June 16, 2025, Trip.com will divest a significant portion of its Class B holdings at a per-share price equal to the public offering price, net of underwriting fees. Upon completion, Trip.com's voting rights will be capped at 19.99%, and its board nomination capacity will be slashed from five to two seats, aligning with the updated terms of issue.
Geopolitical Undercurrents and Domestic Pressure
The restructuring of MakeMyTrip’s ownership appears to have been accelerated by rising national sentiment and political pressure to reduce Chinese and Turkish stakes in Indian corporations, especially those linked—directly or indirectly—to entities seen as sympathetic to Pakistan.
Following last month’s military confrontation between India and Pakistan, there has been a surge in scrutiny of cross-border investments. Prominent among critics was EaseMyTrip co-founder Nishant Pitti, who openly questioned the extent of Chinese control over MakeMyTrip, pointing out that half of its board had connections to China.
This context underscores the urgency with which MakeMyTrip is attempting to insulate itself from potential backlash and regulatory complications that could arise from continued association with foreign stakeholders from geopolitically sensitive regions.
Financial and Governance Implications
Class B shares, typically structured with superior voting rights compared to ordinary shares, have allowed Trip.com to wield disproportionate influence within MakeMyTrip. By repurchasing a sizable chunk of these shares, the Indian travel firm is not only democratizing its corporate governance but also signaling its strategic independence.
Analysts suggest that the reduction in Chinese control could open doors to fresh domestic and international investors who were previously hesitant due to geopolitical risk and corporate governance opacity.
Conclusion
MakeMyTrip’s USD 2.5 billion fundraising and subsequent share repurchase deal marks a significant turning point in the company’s corporate evolution. By recalibrating its shareholder structure and reducing foreign influence, the firm is navigating complex geopolitical terrain while reinforcing its identity as a resilient Indian enterprise. The move may well serve as a blueprint for other companies facing similar scrutiny over foreign ownership amid growing economic nationalism and security concerns.
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