Saif Partners a venture and growth capital fund invests and helps Asia’s exceptional companies to realise their vision. It has sold its entire 11% stake in Makemytrip an Indian online travel space company. The transactions is expected to be one of largest cash exits in India’s venture capital. The company claimed to have been achieved $400Mn by selling Makemytrip.
As per an ET report,” SAIF Partners had invested about $25 Mn in MakeMyTrip between 2005 and 2008 and owned about 41% stake in the company, when it debuted on Nasdaq in 2010. The VC firm was left with about 11.8% holding in MakeMyTrip in October 2016 and has reportedly clocked about 16 times return on its investment in MMYT”.
Saif Partners has been investing in Indian companies since 2001 and its logo states that it supports visionary entrepreneurs across diverse sectors. There are many other portfolio companies in India which is backed up by Saif Partners , Justdial, Man Pasand, Paytm, UrbanLadder, Toppr, UrbanClap etc are some of the examples.
It is indeed a very big exit of a foreign investor with a huge profit bearing. It seems unusual for all the portfolio companies in India to attract foreign investments. There has been
some feedback about acquisitions of some companies, only to be in a primary stock deal.
“You need to be super-patient to get returns in India. For a significant period, the MakeMyTrip stock was below its IPO price,” said Rutvik Doshi, director at venture capital firm Inventus.
Makemytrip has merged with Ibibo Group this year and they are on a process to create India’s largest travel companies in an all stock deal. The deal is valued at $1.8-2 Bn where 60% of the share will be on hold by Makemytrip which is worth $720Mn and the remaining with Ibibo.