A Billion Dollar Indian Internet Company

I have always (after coming into the VC industry) heard the concept of $1 bn company while evaluating early stage businesses. “Can it become a $ 1 bn company?” has been a perpetual question. I always doubted on the concept of $ 1 bn market cap internet company out of India. However; last week our portfolio company, MakeMyTrip IPO made me a big believer of early stage investing.

Early last week, the IPO was oversubscribed by a big margin. My team at SAIF Partners in India was happy that the company will get listed at higher price range of the band giving us a 10x return. It was a joyous moment specially because MakeMyTrip is one of our very early stage investment. Thursday turned out to be a different day for us. All of us checked MMYT (MakeMyTrip NASDAQ ticker) multiple times at night. The stock went through a crazy day and finally closed 89% up on the debut day itself. By this time MMYT was already a $800 MN Market Cap company

MMT

It zoomed again yesterday and according to Nikhil (MediaNama) “the first instance of an Indian Internet company crossing the $1 billion Market Cap”

Though I have joined SAIF very recently but I feel privileged to be a part of the joyous moment. I strongly believe MakeMyTrip IPO will go a long way in contributing to the Indian Internet and start up ecosystem.

1.) It will reinforce investors’ confidence in Internet in India. Couple of days back, Alok bounced if more money will flow to Indian early stage businesses. I didn’t have an answer that time. However; now I believe that it will. I am already seeing lot more deals cooking with various VCs

2.) Hiring senior level talent would be easy in growing Indian Internet/Mobile companies. After Naukri, MakeMyTrip would become another example of wealth creation through ESOP. I am seeing great interest in senior level hiring in our other portfolio companies like HomeShop18 and One97. I think ESOP story will become more credible to sell

Personally, it has created lot of energy and motivation in the team and we will see many more SAIF investments in early stage companies in India. One97 would be another early stage investment of ours going to hit markets soon.

2 Responses to “A Billion Dollar Indian Internet Company”

  1. G says:

    Not sure if this is good or bad! MMYT is valued at more than 10X their revenues and they are still not making any profits. The investment bankers have done a good job of selling the India story. This is nothing but euphoria and we should see the valuation coming down to more saner levels in a quarter or two!

    Apart from the Investors and the CEO, very few people made or will make money in this case so where is the lure of ESOPS!

    Let us hope that we can have a “real” billion $ Internet company out of India which also is profitable :-), and not get disillusioned!!

  2. Alok Mittal says:

    Congratulations to the Makemytrip founders, team and investors. A landmark outcome for the indian entrepreneurial space.

Leave a Reply