Easy Trip Planners, the parent entity of traveltech firm EaseMyTrip, on Tuesday (January 2) said its board has given approval for raising up to INR 1,000 Cr (around $120 Mn) through a preferential issue.
In an exchange filing, the traveltech startup said its board gave in-principle approval for “identifying the optimum combination of equity shares and /or warrants convertible into equivalent number of equity shares of the company to be issued on preferential basis for raising the funds up to INR 1,000 Crore…”
However, the filing didn’t specify how the funds would be used.
The announcement comes days after EaseMyTrip acquired a non-controlling stake of about 13% in Eco Hotels and Resorts Limited in a share swap deal to enter the hotel and hospitality industry.
The company has been on an expansion spree lately. From being an offline B2B2C travel management space to a listed traveltech startup, the company has grown multifold since its inception in 2008.
In July last year, EaseMyTrip received approval to acquire 51% stake each in three Indian travel companies – Mumbai-based Guideline Travels Holidays, Jammu & Kashmir-based TripShope Travel Technologies, and New Delhi-headquartered Dook Travels.
Back then, the company said that such acquisitions would solidify its position as a major player in the travel and tourism industry.
The company reported a 66% year-on-year (YoY) rise in its consolidated net profit to INR 47 Cr in the second quarter of FY24, while operating revenue jumped 31% YoY to INR 142 Cr.
In the traveltech space, the company competes with the likes of MakeMyTrip, Yatra, Goibibo, Booking.com and Trivago.
Among its competitors, MakeMyTrip reported a net profit of $2 Mn in the second quarter of FY24 against a loss of $6.8 Mn reported during the corresponding quarter of the previous year.
Meanwhile, Yatra reported an 11X increase in the net loss to INR 17.1 Cr during the second quarter of FY24 from INR 1.56 Cr in the year-ago period.
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