Listed traveltech company EaseMyTrip is planning to undertake a fresh fund raise of up to ₹500 Cr (around $55 Mn) to expand its presence across non-core segments, particularly in hotels and holidays.
In a statement today, the company said that its board has given an in-principle approval to a proposal to raise funds through the issuance of equity shares or other eligible securities, subject to requisite approval.
The company is yet to decide on the kind of fundraise it plans to undertake. The fundraise is expected to happen over multiple tranches, which include modes like rights issue, qualified institutions placement (QIP), preferential issue or private placement.
Besides investing in its non-core segments, the company also intends to bolster its tech and platform while exploring strategic acquisition opportunities that align with its long-term business priorities.
“The proposed capital raise is about being ready. It gives us the flexibility to invest at the right time, whether in technology or strategic opportunities that fit our larger vision. We are clear that growth has to be healthy and sustainable. Every investment decision will be taken with responsibility and a sharp focus on value creation,” EaseMyTrip’s CMD Nishant Pitti said,
The announcement comes a couple of days after EaseMyTrip reported a weak financial performance for Q3 FY26. In the quarter, the company's net profit plummeted 90% YoY to ₹3.4 Cr while its operating revenue remained flat YoY at ₹151.7 Cr.
This decline has been consistent throughout the fiscal, as net profit dropped 99% on-year and 97% on-quarter to INR 44.3 Lakh in Q1.
EaseMyTrip, once a stock market darling with a market cap hovering at around $1.5 Bn, has now been degraded to a penny stock with a $317 Mn (₹2,880 Cr) market cap.
At the heart of its downfall has been a slowdown in its core business of air ticketing. While this business still accounts for 64% of EaseMyTrip's revenue, its market share is slowly being eaten up by rivals like ixigo and Cleartrip. Ease My Trip is now scaling up subsidiaries such as YoloBus to deepen its non-air mobility play. At the same time, it is also doubling down on international expansion with new subsidiaries set up in Brazil and Saudi Arabia as its Dubai arm saw a 133.2% YoY growth in gross booking revenue in Q3.
The company has also been diversifying its offerings, with a significant ₹200 Cr planned investment in its electric mobility arm Easy Green Mobility announced recently. It aims to manufacture and deploy over 2,000 electric buses by FY28.
Shares of EaseMyTrip were at ₹7.87 at 14:35 IST, trading 19% higher than the previous close.