Venture capital firm SAIF Partners, has exited online travel portal MakeMyTrip by selling its remaining stake in the company, according to regulatory filings. SAIF has divested its balance 11 per cent holdings in a series of transactions since October. The SEC filing now shows that SAIF Partners’ funds SB Asia Investment Fund II L.P., and others do not hold any shares in MakeMyTrip now.
The exit comes as shares of MakeMyTrip have risen almost 66% to $33.95 apiece since 17 October 2016, a day before the online travel firm said it agreed to acquire rival ibibo Group.
The Economic Times first reported SAIF Partners’ exit from MakeMyTrip earlier on Thursday.
Overall, SAIF is estimated to have earned more than $400 million on its investments in the Gurugram-based company, reaping 16 times the money it put in, based on regulatory filings and assessments by two people familiar with the transactions. The venture capital firm had invested about $25 million in MakeMyTrip between 2005 and 2008 and owned about 41% stake in the company when it debuted on Nasdaq in 2010.
An investment exit as rewarding as this is a rare feat. Venture capital firms in India are finding it tough to generate cash from their investments as only a handful of portfolio companies have opted for initial public offerings of their shares, a highly preferred exit route for investors. While there have been a spate of acquisitions in recent years, most of these were structured as primarily stock deals.
Makmeytrip was founded in 2000 by Deep Kalra and initially focused on non-residents Indians travelling to the country. It raised its first financing round from media conglomerate Newscorp-backed eVentures, which the promoters later bought back.
In 2005, the company began focusing on the domestic market, which was when SAIF invested $10 million in it. Makemytrip raised a total of about $40 million from other investors including Sierra Ventures, Helion Venture Partners and Tiger Global Management before its IPO in 2010.