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Deep Kalra
Founder & Group Chairman, MakeMyTrip Limited

There's An Opportunity For MakeMyTrip To Grow Higher Than Industry Industry Growth Rate | CNBC TV18

📅 Apr 05, 2025 CNBC-TV18 15 MIN 369 VIEWS 19 SEGMENTS · 3 SPEAKERS
YT Reloaded Podcast, Deep Kalra and Rajesh Magow, Co-Founders of India’s first online travel company look back at their 25-year journey! From surviving multiple near deaths as a startup, to making several pivots to grow, listing on the Nasdaq, stitching up big acquisitions, they drop plenty of truth bombs! Like how an unexpected push from Sanjeev Bikhchandani led to their historic Nasdaq IPO - a milestone they hadn’t even planned for six months prior to the event! Rajesh Magow says Gen Z is a boon for business as the experience economy reshapes the travel business. #makemytrip #traveltech #...

Questions asked in this interview

4
  1. 0:01What are the bets, what are the big bold bets that you're willing to make at this point in time?
  2. 5:42What's the thinking on that front and is it difficult today?
  3. 11:16I'll end by asking the two of you what is the secret of an enduring friendship?
  4. 12:55What's been the best piece of advice he's given you?
Host 0:01 ↗
Going back to the next 5, 10, 25 years. So how what is the growth aspiration now as far as the business is concerned at a group level? Where do you believe you would like to see this? What are the bets, what are the big bold bets that you're willing to make at this point in time?
Deep Kalra 0:20 ↗
Yeah, sure. So I don't know whether I can talk about the growth rate specifically. Do you know we are a listed company at this point in time and no future guidance etc. But I'll give you direction aspirational. Of course. Of course. No. So I'll tell you directionally the way we are thinking about it. I think for the foreseeable future in the internet world maybe 5 years maybe 10 years. We think there is an opportunity for MakeMyTrip as a group to grow higher than the industry growth rate. Now whether it is 1.5x of the industry growth rate or 2x, time will only tell, but let's say the industry growth rate is X, then we will definitely be higher than that. And that is likely to be across all the businesses, even the matured businesses that we have. The other places where we see an opportunity where there's underpenetration, where those are younger businesses, relatively lower base, the opportunity is higher, the growth rate is going to be higher.
So I'll give you a few. I think Deep was mentioning earlier, overall e-commerce business still is underpenetrated in India, but also the international business, and I don't think it's going to come at the cost of domestic market because the size of the domestic market is also really, really high. Whether it is international flights or international hotels, within the overall e-commerce business is also alternative accommodation because there's so much of new supply coming into the market of villas, hostels, home stays, huge, and that's going to drive the new wave of growth as well. If you look at the corporate business that we got in, really younger business, growing at about 40% year on year, huge market. If you look at the total size of the pie, the corporate business is about 30% of the total pie and we just have a small share of that, so we will continue to keep scaling that business up.
Activities and experiences in destination, activities and experiences is another new bet that we are taking. We are also looking to bring cruises on our platform. So I think the vision which was always there, that we want to be a one-stop shop for all the travel needs, now including all the ancillaries, whether it is forex or visas or consumer loans or curated holidays or a la carte booking, all modes of transport. We recently invested in intercity cab use cases in Sabari as well, and we think that on the back of infrastructure improvement that is happening in the country, the road infrastructure particularly, that is going to be another space because it's really fragmented at this point in time. So if you look at all of these put together, whether it's international or the overall accommodation, alternate accommodation, experiences, the holidays business, the corporate business, the plate is frankly full.
And then not to forget about now expanding UAE GCC business from UAE to KSA as well. And by the way, I just wanted to also share, less talked about, the red bus business, overall ground transport business. In fact, red bus management team, Pash who's the CEO there, is overseeing the overall ground transport business for us. That playbook we have actually taken to the international destinations already. Just the bus booking platform, we are already the market leader in Malaysia and Singapore, and we are investing in places like Indonesia and Vietnam, and we are also in Latin America there, believe it or not. So we want to take that playbook. The international playbook is going to be limited, let's say red bus that international playbook, and the OTA market is going to be regional to start with, and we don't really want to completely change it to become like a global platform.
The only new thing that we've done and that is to cater to the Indian diaspora market globally is to become GDPR compliant. So we are now accessible from 150 countries, and now anywhere to anywhere booking can happen. But the way we are trying to position it is to first organically get all the Indian diaspora which is spread out, because I think it's a very big opportunity there as well, and we'll get that organically because MakeMyTrip brand is popular with Indians. So when they come here, they all use, they are all our customers, and we're going to use that.
And talking about customers, by the way, the other thing that we should have mentioned perhaps was also, so the high point for us is about 80 million customers who've transacted with us, life to date customers. And every year we will have about 121 million bookings, so about 20 million customers. So literally about 230 bookings a day, about 4,000 people every not day, 230 bookings a minute, and about 4,000 people on platform every minute, all three brands put together. And so that's the kind of scale. But it's not all because if you look at the overall e-commerce category, you have a growing population of 250 million to 300 million. So I think if you try to see the big picture with all of this, the outlook looks quite positive.
Host 5:42 ↗
I want to address the regulation issue, Deep, and through the course of the last 25 years you've had your run-ins with regulators and with regulation, whether it's the CCI or other agencies. 2016 perhaps was the lowest point as far as dealing with regulation and regulators was concerned for you. As you look at what's happening today, do you believe that there is a need for greater engagement with regulators to really understand the nuances of what it takes to run e-commerce businesses, digital businesses, an understanding of creating regulations that are necessary to put the guardrails in place, but also there isn't a sort of overreach? What's the thinking on that front and is it difficult today?
Deep Kalra 6:26 ↗
I think it's a rhetorical question. Absolutely. And we've spoken about it. We've obviously had our fair share like almost all companies, and happy to say service tax case went on for a long time, came out finally, won the case, but it takes a lot of energy and takes a lot of time and money, almost seven years, and a lot of distraction to the business, and it was actually baseless because the way it's structured, the powers that be who can come and ask you all kinds of questions, whatever they can do, probably don't have that full understanding. So you also answered it in your question. I think a lot more working together, explaining the business model, how these models are working, are they very different in some cases yes from traditional models to understand, but the fact is that these are contributing a lot to the economy, paying a lot in taxes, giving a lot of employment. So please understand this new sector and let's figure out a smart way. You explain what is required and we will explain what the companies are going to do. And then at least the overreach is definitely, but that was a shock to the system, wasn't it? I mean, you actually had a situation where one of your senior employees was put behind bars on account of this. Yeah, three nights. Yeah, it was a low point for sure, but happy to say that we came out of it stronger. But this is happening all around and I think it's just because if there was better understanding, it would be better.
Rajesh Magow 7:59 ↗
Yeah. And across sectors, not just specific to the travel sector. Oh yeah. I think it's more about not so much about travel. It's more about the new economy, how the new economy works. Yeah. I think it's important. I think it might be just maybe one of the areas. I mean, there's a lot of engagement. Industry has a lot of engagement, it is happening. So I don't think, to be fair, but maybe there is need not to deviate from the fundamentals of the law as well. So let us say whether it is consumers, consumers are the same consumers whether they are e-commerce consumers or offline consumers. Products and services that are being serviced or sold are the same products, they're not very different. The concept of businesses, monopolies or whatever, or data privacy, etc., are not very different. At the core of it, whether it is related to privacy or if it is related to any particular law around direct taxes or indirect taxes, they revolve around products and services and they're not really different. So if we don't end up looking at e-commerce companies or the industry in silo, but go back to the fundamentals and see if there are any tweaks and amendments that are required, might be the better way to go about it, rather than just thinking that there is a whole bunch of legislations or new rules that have to come in only for the e-commerce companies. It doesn't make fundamental sense to me.
There will be areas where you would need because those businesses did not exist. Whether it's a gaming company or any other companies, but guess what, in many ways the lottery businesses existed in the past, etc. So some of those principles we should not necessarily deviate from. And if we are trying to bring all of that together and then come up with that, then there has to be some amendment, some regulation will have to come in, which is fine, which is totally fine. The other thing that I think, since we're talking about it, the reason why we came out of it winning from that specific case was also, and that I think is the learning and maybe the piece of advice for all the young entrepreneurs as well, is to make sure that you fundamentally focus on building and doing the right thing within the frame of law as well. Because the reason why we obviously went through a lot of challenges around it on that particular specific case, but the reason why we came out of it winning is because we were doing the right thing at the end of the day. So not cut corners, don't do anything silly. That's something that you should not necessarily even for the gray areas. So I think as long as you end up doing your part and then engaging with the regulators and government to create awareness, to Deep's point, because it's a new area, everybody has to come up to speed with that and then come out collectively, not deviating from the fundamental core principles that you have and taking a silo approach, we might be able to deal with this better.
Host 11:16 ↗
I'll end by asking the two of you what is the secret of an enduring friendship?

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APA

Kalra, D. (2025, April 5). There's An Opportunity For MakeMyTrip To Grow Higher Than Industry Industry Growth Rate | CNBC TV18 [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/1078944/

MLA

Deep Kalra. "There's An Opportunity For MakeMyTrip To Grow Higher Than Industry Industry Growth Rate | CNBC TV18." CNBC-TV18, 5 Apr. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1078944/.

BibTeX
@misc{kalra2025_1078944,
  author       = {Deep Kalra},
  title        = {There's An Opportunity For MakeMyTrip To Grow Higher Than Industry Industry Growth Rate | CNBC TV18},
  howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
  year         = {2025},
  month        = {apr},
  url          = {https://ceointerviews.ai/interview/1078944/},
  note         = {Speaker-attributed transcript with timestamps}
}