MakeMyTrip, India’s prominent online travel agency headquartered in Gurugram and listed on the Nasdaq in the United States, has announced a major fundraising initiative exceeding $2.5 billion. This capital will be raised through a combination of share sales and zero-coupon convertible senior bonds. According to the company’s filings with the U.S. Securities and Exchange Commission (SEC), the primary aim of this move is to significantly reduce the stake held by China-based Trip.com Group in the company.

As part of this effort, MakeMyTrip will issue 14 million new shares, expected to bring in around $1.4 billion. In addition, the company plans to raise another $1.25 billion through the sale of convertible bonds, with the potential to issue a few hundred million dollars more in bonds if needed. The proceeds from this fundraising exercise will be used primarily to buy back a portion of the outstanding Class B shares currently held by Trip.com. Once this process is completed, Trip.com’s voting power in MakeMyTrip is expected to drop from over 45% to about 20%, significantly reducing the Chinese group’s influence in the company.

While MakeMyTrip has not explicitly stated the reason behind reducing Trip.com’s stake, the move comes in the context of heightened calls in India to cut business ties with Chinese and Turkish entities. These calls intensified after the recent India-Pakistan military conflict, as both China and Turkey are often seen as allies of Pakistan. The decision also comes amid long-standing tensions between India and China, particularly after the 2020 Galwan Valley clashes in Ladakh, which had already sparked public sentiment against Chinese investments in Indian companies.

Last month, Nishant Pitti, the founder of rival online travel agency EaseMyTrip, publicly criticized MakeMyTrip for its significant Chinese investment, reigniting concerns about foreign influence in Indian companies, particularly those in sensitive sectors like digital travel and services.

In response to the growing scrutiny and criticism, MakeMyTrip issued a strong statement reaffirming its identity and values as an Indian company. The company highlighted that it was founded by Indians, has its headquarters in India, and has been serving Indian travelers for over 25 years. It emphasized that its operations are independent and managed by a team of experienced Indian professionals. MakeMyTrip also underlined its compliance with Indian corporate governance norms and data privacy regulations.

The company stressed that it does not respond to what it termed “malicious or motivated accusations” and remains committed to offering the best services to its customers as a responsible corporate entity rooted in India. This statement was seen as a clear rebuttal to the social media criticisms and public concerns regarding its links with Chinese investors.

In summary, MakeMyTrip’s $2.5 billion fundraising initiative is a strategic effort to reduce Chinese control in the company at a time of geopolitical sensitivity and growing nationalistic sentiment in India. It signals the firm’s intent to reinforce its Indian identity and reduce foreign influence, particularly from adversarial nations, while continuing to expand its business and strengthen shareholder confidence.