New Delhi: The market capitalization of MakeMyTrip hit $3 billion figure after the company announced in what appears as a major management shuffle. Shares of the company were up by 21.16 percent in intra-day trading on the Nasdaq index.
MakeMyTrip announced that its group chief executive Deep Kalra had stepped down as the Group Chief and would work as the Executive Chairman. The company also stated in its official communication that co-founder Rajesh Magow, the current CEO of MakeMyTrip India, would take over Kalra's role.
Kalra is a St Stephen’s College and an IIM-Ahmedabad alumni, and the statement read, "He will devote his full time to pursuing strategic initiatives, including product innovation and expansion, geographic growth, business model innovation and corporate development, in his new role as Group Executive Chairman."
"We believe that separating the roles of Group CEO and Executive Chairman will allow us to focus more on long-term strategic opportunities within and outside India, while maintaining our market leading position in our existing businesses," Kalra was quoted as saying.
Elaborating on Rajesh Magow's roles and responsibilities, the statement added, "as Group CEO, Mr Magow will focus on driving the next phase of growth for the MakeMyTrip Group through its three strong brands, MakeMyTrip, Goibibo and Redbus
and will continue to work closely with Mr Kalra."
The management shuffle arrives close on the heels of the third-quarter results which saw net loss increase to $15.8 million compared to $14.8 million last year. Third-quarter adjusted revenue increased 14.9% year-on-year to $206.7 million. Quarterly gross bookings of over $1.7 billion, a growth in constant currency terms of nearly 19%. This represents nearly $4.9 billion in gross bookings and constant currency growth of over 21% for the nine months of fiscal year 2020.
MakeMyTrip went public in 2010 and Kalra has been instrumental in several notable acquisitions including that of close rival - Ibibo Group. As of end of business hours on Tuesday, the MMYT counter reported a price of $29.32 per share, few points away from a 52 week high of $32.30.