In its second-quarter results for the fiscal year 2023-2024, MakeMyTrip revealed that it had made an agreement to acquire a majority stake in Savaari Car Rentals Private Limited. Under this deal, Savaari will remain an independent entity and will be led by its existing leadership team.
“All the formalities of the acquisition of the controlling stake are now complete. This acquisition marks a pivotal moment in the USD 3 billion-plus, yet largely unorganized, intercity market. We are now looking to transform this space by leveraging technology as well as deeper consumer understanding from MakeMyTrip. The timing of the acquisition couldn’t be better, as it coincides with the improved road infrastructure in the country and a wider acceptance among travelers to book intercity cab services online,” said Gaurav Aggarwal, founder and CEO, Savaari Car Rentals.
“The inter-city cab service remains largely offline, with low online penetration, fragmented supply, and a lack of standardisation in service. We have encountered similar issues in intercity private bus transport where we now have a leadership position through redBus. With this majority stake in Savaari, we seek to extend that leadership to adjacent segments in ground transport,” said Rajesh Magow, co-founder and Group CEO of MakeMyTrip.
“The founding members and the leadership of Savaari have done an incredible job over the past few years in becoming the premier player in this category. Our endeavour now will be to further boost growth with our technology and consumer insights expertise. Prakash Sangam, CEO of redBus, will lead this initiative from the MMT group’s perspective and work closely with the leadership team of Savaari to scale this business to new heights.
Speaking about the development, Samir Kumar, MD and general partner, Athera Venture Partners, who were early investors in Savaari and redBus, said, “The acquisition of Savaari by MakeMyTrip not only affirms Savaari’s dedication to excellence but also heralds a new era of growth and possibilities. I’ve witnessed MakeMyTrip’s remarkable intercity private bus travel transformation with redBus. This innovation and expertise, I firmly believe, will be replicated in reshaping intercity cab services with Savaari, continuing their trajectory of redefining travel in India.”