MakeMyTrip Limited (NASDAQ:MMYT) is an Indian online travel company. The company operates of the website MakeMyTrip.com and allows customers to book airline, bus, rail, and other travel tickets. In addition, the company allows users to book hotel rooms and other aspects of travel plans. They make money by charging companies lead generation fees, charging customers transaction fees, and by receiving incentive payments from airlines from favorable product placement.
While the concept of the website is not revolutionary, Deep Kalra, the founder has focused on solving Indian specific problems. The company did copy many aspects of existing sites, but managed to provide a tailored service to the needs of Indian travelers. MakeMyTrip expects the growing Indian middle class will continue to expand its market. According to McKinsey, a management consulting firm, the Indian middle class is anticipated to grow ten times, from 50M to 583M between 2005 and 2025.
The company's initial public offering of stock filed on the NASDAQ and went public on 12 August 2010. It priced at $14, which is at the top end of its initial price range of $12-$14. They did raise $70M by selling 5M shares. The lead underwriter of the deal was Morgan Stanley (MS) The company recorded a first day rise in price of 89%. This is the largest recorded rise since Athenahealth, Inc. (ATHN) went public in September 2007 with a 97% jump.
While MakeMyTrip has continued to experience a [[net loss], they have been able to substantially increase revenues over the past three years. The company announced FY 2010 revenue of $32M a 68% increase from the $19M announced in 2009. Net loss also fell from -$7.3M in 2009 to -$6.2M in 2010. The company has accumulated a total debt of approximately $42.5M and expects to use part of the proceeds from their IPO to pay down this debt.