Online travel aggregator MakeMyTrip has received $10 million investment from its Mauritius-based parent company MakeMyTrip Limited. In the current calendar year, the parent company has infused over $24.74 million in its Indian arm, according to the ROC filings.
The development comes when MakeMyTrip has recently invested an undisclosed amount in Bengaluru-based Bitla Software to utilise its solutions for the bus and hotel supplier sector. Its Indian arm contributes about 85 percent revenues to the Nasdaq-listed parent company.
According to the filing by the company with Nasdaq, “Marketing and sales promotion expenses of MakeMyTrip have increased by 19.1% to $93.9 Mn in the quarter ended March 31, 2018, from $78.8 Mn in the quarter ended March 31, 2017.”
The filing also stated that the marketing and sales promotion expenses include significant customer inducement and acquisition programme expenses incurred to accelerate growth in their standalone hotel booking business and brand advertisement expenses.
MakeMyTrip group after its merger with Ibibo has been spending significantly on customer inducement and acquisition. It recently raised funds through a rights issue done by its Nasdaq-listed parent valuing the company at around $3.8 billion.