MakeMyTrip Acquires Majority Stake In Savaari Car Rentals
MakeMyTrip unveiled its second quarter FY23–24 results and it has agreed to acquire a majority interest in Savaari Car Rentals. Savaari will continue to operate as an independent entity led by the existing leadership team, as stated in the release.
Intercity car rental service provider startup Savaari begins its journey in the inter-city cab rental market following the completion of a transaction in which MakeMyTrip acquired a majority stake.
"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 unorganised, 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 travellers to book intercity cab services online,” said Gaurav Aggarwal, Founder and CEO, of Savaari Car Rentals.
Samir Kumar of Athera Venture Partners applauded MakeMyTrip for acquiring Savaari, sharing his own experience as he had previously invested in the company and Redbus remains confident in Savaraari's ability to disrupt the market.
“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.
