MakeMyTrip raises INR 73.5 Cr from Mauritius entity
MakeMyTrip has raised INR 73.5 Cr in two tranches from Mauritius-based entity - MakeMyTrip Limited.
According to the ministry of corporate affairs (MCA) filings accessed by a news source, MMT has raised INR 37 Cr on March 16 while the parent company infused INR 36.5 Cr on March 9. As part of the transaction, MakeMyTrip issued 21,81,461 shares to the company at INR 340 per share with a nominal price of INR 10.
MakeMyTrip had reported an adjusted operating loss of $11.2 Mn in Q3 2020, down from $19.3 Mn in the previous quarter in the same fiscal. Meanwhile, the company’s revenue increased to $146.9 Mn, from $118 Mn in the previous quarter.
While the company might have had the same hopes for this year as well, its operations have been severely affected due to coronavirus. Overall, the travel and tourism industry is facing huge losses right now as people are not travelling amid lockdown.
MakeMyTrip’s Kalra and CEO Rajesh Magow shared a revival plan with the company’s employees. Some of the measures include reducing variable costs such as advertising, sales promotions and payment gateway costs, along with optimising IT infrastructure and expenses relating to the functioning of our offices and other establishments.
Also, setting an example for other companies and startups as well, both Kalra and Magow are not taking any salaries effective April 2020 while the rest of the leadership team have also offered to take approximately 50% in their compensation. The company is trying to resort itself from taking harsh decisions such as layoffs or salary cuts of junior or mid-level employees.
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