Entrepreneurship and

New Venture Planning

Assignment

Name: Bhavya Verma

Roll No. : 20056774008
College: Ramjas College
Course: M Com
Submitted to : Mr. Mansoor Ahmad Sir
ABSTRACT

MakeMyTrip Limited is an Indian online travel company founded in 2000. Headquartered in Gurugram,
Haryana. As of 31 March 2018, they have 14 company-owned travel stores in 14 cities, over 30
franchisee-Owned travel stores in 28 cities, and counters in four major airports in India. MakeMyTrip has
offices in New York, Singapore, Kuala Lumpur, Phuket, Bangkok, and Dubai. This paper

MISSION AND VISION

To be a catalyst for positively impacting destinations, people and the environment by promoting
sustainable travel and tourism.

MakeMyTrip is venture that was started with the main aim of empowering Indian travellers with instant
booking along with providing a large number of choices to pick from.

MOTIVATION TO START MAKEMYTRIP

Kalra thinks that failure in his case helped him a lot to egg him on. Hence, with a backing of eVentures
and along with co-founders like – Rajesh Magow, Keyur Joshi, and Sachin Bhatia, deep began his new
Entrepreneurial journey with and online travel company, MakeMyTrip after realizing the possibilities of
the internet.

INTRODUCTION

MakeMyTrip initiated its journey in the US-India travel market in 2000 and started its Indian operations
only in 2005.

Today, it is a name to reckon with in online reservations for travel. It provides a range of products,
services and options to its customers by providing facilities for booking international and domestic
airline tickets, Indian railways tickets, domestic bus tickets, international and domestic hotel
reservations, car rentals, international and domestic holiday packages and much more.

The company had the objective of providing a range of best-value products and services along with
advanced and forward-looking technology and a dedicated 24-hour customer support system.
The company is a dominant player in the travel-booking industry with a market share of around 50 per
cent in the online travel market.

It established itself gradually in India and the world over, and alongside nurtured the growth of its
offline businesses through the business model of franchises and affiliates, which enabled it to further
strengthen its brand value.

MakeMyTrip at present offers the broadest selection of travel products and services in India.

UNIQUE BUSINESS PLAN

It is one of the most reliable, efficient and technology-driven companies with key focus on customer-
centricity, which enables it to better understand customer needs and provide products and services that
cater to a highly diversified spectrum of customer needs and wants.

One of the unique features of the company’s operations backed up by technology is that their
technology platform is scalable and can be upgraded to take care of increased traffic and complexity of
products with limited additional investment.

The company has grown fast after the initial phase of teething troubles to become the market leader for
US-India travel. It has created a new wave in the travel-booking industry and is among the leading
players in the Indian travel industry.

Soon with the convenience that it provided to customers, it has become the preferred choice of millions
of travellers who were enchanted and thrilled to be empowered by a click of a mouse to take care of
their travel needs, MakeMyTrip.com was felicitated with the Galileo Express Travel World's Best Online
Travel Agency in India' Award in 2007.
This makes the company the first-ever recipient of the award for this category introduced during the
same year.

MARKET STRATEGY

Products Offered by the Company are: international and domestic air tickets, holiday packages and
hotels; domestic bus and rail tickets; private car and taxi rentals; MICE (meetings, incentives,
conference; B2B and affiliate services and exhibitions)

The company has a highly user-friendly Web site. It had an average of over 2.7 million visitors per month
in the fiscal year 2011. During 2010, a total number of 2.0 million transactions were executed through
the company Web sites, which accounted for around 94.5 per cent of their total transactions. This
increased to 3.6 million transactions accounting for around 96.0 per cent of their total transactions in
2011.

The key strengths of the company are being the largest travel company in India with a well-established
brand name; a broad spectrum of services offered to customers; a wide distribution network; latest,
secure and scalable technology: a customer-centric approach and a highly professional and experiented
management team.
FOUNDER

Kalra obtained his Bachelor's degree in Economics from St. Stephen's College, Delhi, in 1990 and a
postgraduate diploma in management from the Indian Institute of Management, Ahmedabad, in 1992.
He has diversified interests ranging from adventure sports, swimming, yoga, quizzing and travelling to
places off the beaten path. He is a member of the executive council of NASSCOM and chairs the
NASSCOM Internet Working Group. He is also a charter member of TiE (The Indus Entrepreneurs) and
serves on the Board of TIE, New Delhi. He has also set up a non-governmental organization (NGO) called
I Am Gurgaon that has a key focus on taking initiatives to improve the quality of life in Gurgaon.
FINANCIAL PERFORMANCE REVENUE MODEL

The company generates its revenue mainly through commissions and incentive received from airlines,
service fees charged to customers and fees from their global distribution system, or GDS. service
provider.

Travel agents utilize a GDS to book air tickets and receive fees for their use of such a system. In case of
hotels and packages business, the revenue received by the company includes the total amount paid by
customers for availing travel services and products and the cost of procuring the relevant services and
products are classified as service cost.

PROPOSED UTILISATION OF IPO PROCEEDS

The net proceeds to be received from the sale of the ordinary shares offered by the company will be
around $33.5 million, after taking care of the underwriting discounts and commissions and estimated
offering expenses payable by the company.

The net proceeds are likely to be around $38.5 million, in case the underwriters exercise their option to
purchase 786,600 additional ordinary shares in full.
The company proposes to use the net proceeds from the IPO for expanding its operations by acquiring
or investing in strategic businesses or assets that complement its service and product offerings,
enhancements of technology, as well as for working capital and other general corporate purposes.

References:

1. S Aswini Priya, Dr. Pulidindi Venugopal, S. Anjani Devi (2020). Analysis of MakeMyTrip, It’s
market presence, methods and outcome: A case study. Journal of Xi’an University of
Architecture & Technology

2. Arya Kumar (2012). Entrepreneurship: Creating and Leading an entrepreneurial organization.

Pearson

3. Sanjay Kumar Kar (2010). Makemytrip.com (A). Vikalpa

4. Deep Kalra’s Success Story: Entrepreneurial journey from failure in bowling business to
MakeMyTrip

https://sugermint.com/deep-kalras-success-story-entrepreneurial-journey-from-failure-in-bowling-
business-to-makemytrip/#:~:text=He%20thinks%20that%20failure%20in,the%20possibilities%20of
%20the%20internet

5. Business model of majemytrip

https://studiousguy.com/business-model-of-makemytrip/#:~:text=MakeMyTrip%20works%20on
%20B2C%20

6. Aditya Shastri. MakeMyTrip Digital Marketing Case Study. IIDE

https://iide.co/case-studies/makemytrip-marketing-strategy/

7. Subhash Gupta (2011). Makemytrip. Scribd

https://www.slideshare.net/SubhashGupta5/makemytrip

8. MakeMyTrip
https://www.makemytrip.com