Updated January 26th, 2024 at 14:59 IST
Savaari takeover: MakeMyTrip sets sights on unorganised inter-city travel market
MakeMyTrip plans to leverage its technological prowess and consumer insights expertise to enhance the performance of Savaari Car Rentals.
- 2 min read
MakeMyTrip Savaari acquisition: MakeMyTrip, the prominent online travel service provider, has successfully acquired a majority stake in Savaari Car Rentals Pvt Ltd. The acquisition ensures Savaari's autonomy under its existing leadership, with Gaurav Aggarwal, Founder and CEO of Savaari Car Rentals, expressing enthusiasm about the deal. Aggarwal stated, "This acquisition marks a pivotal moment in the $3 billion-plus, yet largely unorganised, inter-city market."
The completion of formalities in acquiring the controlling stake is anticipated to significantly contribute to MakeMyTrip's growth trajectory. MakeMyTrip plans to leverage its technological prowess and consumer insights expertise to enhance the performance of the acquired entity. The timing of the strategic move aligns with the improved road infrastructure and the growing acceptance of online intercity cab services.
Established in 2006, Savaari specialises in offering outstation one-way drops, round trips, local rentals, and airport transfers in over 2,000 Indian cities. Rajesh Magow, Co-founder and Group CEO of MakeMyTrip, emphasised the company's goal to address challenges in the predominantly offline inter-city cab service. Magow stated, "With this majority stake in Savaari, we seek to extend that leadership to adjacent segments in ground transport."
Prakash Sangam, CEO of redBus under the MakeMyTrip group, will spearhead the initiative, collaborating closely with Savaari's existing leadership team to expand the business. The acquisition is in line with MakeMyTrip's broader strategy to fortify its leadership position in various ground transport segments.
MakeMyTrip reported robust financial performance, with an annual revenue growth of 25.6 per cent, reaching $214.2 million in Q3 FY24. The acquisition of a controlling stake in Savaari Car Rentals is poised to further strengthen MakeMyTrip's market position, offering enhanced services in the rapidly evolving ground transport landscape. As the travel industry undergoes transformative shifts, this strategic move positions MakeMyTrip as a key player in shaping the future of inter-city travel services.
Published January 26th, 2024 at 13:02 IST