Tier-II markets, overseas travel drive MakeMyTrip’s growth: Group CEO Rajesh Magow

BL Mumbai Bureau Updated - May 15, 2025 at 02:17 PM.

However, its profit was impacted due to the absence of one-off gains

Rajesh Magow

MakeMyTrip has said that deeper penetration into tier-II and tier-III markets, along with a rise in outbound travel, helped drive over 26 per cent growth in its gross bookings to $9.8 billion in FY25.

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“Our high growth rate has come from both new users and existing customers. During the year, we added more than 9 million customers, taking the lifetime transacted user base to 82 million. A lot of the new users have come from tier-II and tier-III towns, signifying our brand’s penetration in India,” MakeMyTrip’s Group CEO Rajesh Magow said during the post-results conference call on Wednesday.

While the online travel portal saw an increase in gross bookings, revenue, and margins in the fourth quarter of FY25 on a year-on-year basis, its profit was impacted due to the absence of one-off gains. Excluding those, the net profit for the period rose by over 92 per cent to $29.2 million.

Magow said MakeMyTrip has strengthened its product proposition, which helped the company achieve better sales. In FY25, international air ticketing revenue grew by over 33 per cent year-on-year, far outpacing industry growth, he said. Similarly, international hotel revenue grew by over 65 per cent YoY, making it one of the fastest-growing business segments for the company.

“Our international business now contributes 25 per cent to the overall revenue, up from 22 per cent during FY24,” Magow added.

The company has also ramped up its homestay business and is benefitting from the growth in spiritual tourism in the country. Volume to pilgrimage towns rose 95 per cent year-on-year, with the Kumbh Mela providing an additional boost to business.

Published on May 15, 2025 07:46

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