The Travel Market in India is projected to reach $125 billion by FY25 from a FY20 estimate of $75 million, according to IBEF’s 2025 report.
Source: Wikipedia
India’s recent economic growth and development have boosted the travel and tourism industry of the country, enabling seamless travel within and outside the country. With the integration of digital tools in the travel industry, MakeMyTrip has become India’s leading online travel agency, engaging over 68 million monthly active users. With its vast suite of travel services, including travel bookings to hotel reservations, MakeMyTrip has evolved into a household brand in India’s travel industry. Explore the 25-year journey of MakeMyTrip, making travel more accessible and easier for Indian travellers.
Deep Kalra: Founder of MakeMyTrip
Source: The Economic Times
Founder of MakeMyTrip, Deep Kalra, was born in Hyderabad, India. He completed his bachelor’s degree in Economics from St. Stephen’s College, Delhi University in 1990. He further pursued his master’s degree from IIM-Ahmedabad in 1992. Before MakeMyTrip was founded, Deep developed his business insights by working at ABN AMRO Bank, GE Capital, and AMF Bowling.
Establishment of MakeMyTrip
Source: Eleve Media
Deep, after realising the potential of the internet for simplifying travel bookings, got an idea of establishing a platform for travel bookings. Thus, while grabbing the opportunity to create a user-friendly digital platform that offers transparency and convenience to travellers, MakeMyTrip was founded in 2000.
In the beginning, MakeMyTrip was focusing on targeting NRIs in the United States, where travellers had limited options for booking flights from the U.S. to India. It offered them a user-friendly platform for quick bookings at highly competitive pricing, along with reliable services. With the internet’s expansion in India, in 2005, MakeMyTrip shifted its focus to domestic travellers and ultimately grew as a comprehensive travel solutions provider in India.
Achieving Significant Milestones
Source: BuzzzTed
IPO: In 2010, by going public on NASDAQ, MakeMyTrip became the first Indian online travel company to offer an IPO. With its shares surging 90% on the first day, and with a closing valuation of $1 billion, they hit a massive success. It benefited them by getting global recognition and developing a strong financial position for their expansion.
Revenue over $1 billion: MakeMyTrip started offering services beyond travel bookings, such as hotels and bus bookings, holiday packages, etc. Thus, earning revenue of over $1 billion in 2010 and becoming India’s leading online travel agency.
Strategic Partnerships and Acquisitions, and beyond it: MakeMyTrip for offering seamless railway and flight bookings, collaborated with IRCTC and major airlines. It helped them to offer competitive pricing and exclusive deals to their customers.
In 2011, MakeMyTrip acquired Luxury Tours and Travel of Singapore, ITC Group Hotel Travel Group, and ETB Group in order to expand its presence in Southeast Asia and Europe. In 2012, MakeMyTrip launched RoutePlanner for users to search routes and travel modes within India, increasing its customer base.
In September 2014, MakeMyTrip instituted a $15 million innovation fund to support travel start-ups, and in July 2015, they also invested in the travel information and hotel review portal HolidayIQ and acquired approximately 30% stake in that company.
In January 2016, a China-based travel booking company, Ctrip, agreed to invest $180 million in MakeMyTrip and in the same year, MakeMyTrip successfully acquired Goibibo and RedBus in a deal valued at approximately $1.8 billion. Goibibo had a strong hotel booking segment, and RedBus had dominated the bus bookings, making the acquisition a strategic shift for the diverse offerings of MakeMyTrip.
The combined entity, i.e. MakeMyTrip, Goibibo, and RedBus, processed over 34 million transactions in a fiscal year, representing their dominance in India’s online travel segment. MakeMyTrip also launched myBiz- a comprehensive business travel suite and acquired the Mumbai-based corporate travel management company Quest2Travel in 2019. In 2020, MakeMyTrip also launched the MyPartner platform for travel agents.
In 2020, MakeMyTrip crossed the Gross Margin Value [GMV] with over $6 billion. Then, further, in 2021, MakeMyTrip collaborated with Amazon Pay to offer travel services on Amazon, and in April 2022, its fintech arm, TripMoney, acquired BookMyForex, an online foreign exchange services provider.
Source: The Economic Times
After serving as a CEO for nearly two decades, in 2020, Deep Kalra shifted to the role of Chairman to develop long-term strategies and leadership, enabling Rajesh Magow to become CEO for further continuity in operations.
AI’s Integration
Source: Oneclick IT Consultancy
MakeMyTrip launched an AI-powered travel planning solution through Microsoft’s Azure OpenAI on its platform. Enabling voice-assisted technology, making booking more accessible, and personalised recommendations for booking itineraries. An AI assistant named Myra handles flight bookings, hotel reservations, and itinerary customisation, enhancing customer experience. They have also adopted AI-driven dynamic pricing for users to receive personalised travel deals based on demand and seasonality. With the continuation of integrating AI, MakeMyTrip aims to refine its digital offerings to achieve higher engagement and conversion rates.
Challenges
In the early stages, MakeMyTrip did not have many Indian customers due to a lack of trust in online bookings. But as they built credibility with secure transactions, customer support, and partnerships, they were able to cater Indian audience as well.
MakeMyTrip, as well as the whole travel industry, was affected by the COVID-19 outbreak. However, Deep managed it by approaching various cost-cutting measures, digital transformations, and flexible booking policies.
Social Impacts
Source: Workspace
With an active promotion of sustainable tourism, MakeMyTrip has planted over 1.3 million saplings and is supporting local livelihoods in various regions. Their CSR initiatives are focusing on afforestation, waste management, and community empowerment. Deep has been mentoring startups and is also supporting the Startup India Movement through his investments and advisory roles.
Finances
In FY23, MakeMyTrip’s gross bookings were $6,566 million, with a 122% growth from its previous year. In FY24, the gross bookings amounted to $7,954 million, and in FY25, they reached $9,798 million.
With a 3x growth in FY23, MakeMyTrip’s adjusted operating profit was $70.3 million. In FY24, it was increased to $124.2 million and $166.8 million in FY25.
Awards and Recognitions
- Deep Kalra was recognised as the Economic Times Entrepreneur of the Year.
- MakeMyTrip won the Great Manager Awards 2022 in the companies with great managers.
- For 7 consecutive times, the company has been recognised as the Most Inclusive Companies Index [MICI] study in the 100 best companies for women.
- MakeMyTrip has also won the ET Human Capital Awards in the People Focused CEO of the Year 2022.
Key Takeaways from the Founder
- Be consistent in being customer-centric and building trust.
- Target convenience, transparency, and quality in services to offer.
- Achieve sustainable approaches for long-term existence.
- Embrace innovations and strategic partnerships.
- Be quick in recognising the opportunities.
Final Thoughts: MakeMyTrip Success Story
With Deep’s leadership, MakeMyTrip has revolutionised travel in India, making online booking more accessible and convenient for millions of people. While managing strategic acquisitions and partnerships and the integration of AI-powered technologies, Deep ensured that the company led India’s travel industry. As a leader, his legacy continues to shape the future of travel in India with MakeMyTrip’s focus on expansion in various countries, embracing sustainability and advanced technology for the long term.
