MakeMyTrip Expands Corporate Travel Portfolio with Happay Acquisition
MakeMyTrip, the leading online travel company, has announced its decision to acquire Happay, a corporate expense management platform, from CRED. This acquisition, which marks a significant expansion of MakeMyTrip’s corporate services, will bring Happay’s specialized expense management solutions into its fold. The deal is expected to close within the next 90 days, following the completion of necessary closing conditions.
Happay, which was previously acquired by CRED in 2021 for $180 million, offers a platform to help businesses manage travel expenses and tax benefits for employees. The company’s solutions are designed for large organizations with multiple branches, making it a valuable asset for businesses dealing with complex expense management needs. Under the new agreement, Happay’s brand, business, and team will transition to MakeMyTrip, which aims to enhance its corporate travel and expense management offerings.
Why the Acquisition Makes Sense for MakeMyTrip
This acquisition comes as part of MakeMyTrip’s broader strategy to strengthen its presence in the corporate travel segment. By integrating Happay’s extensive expertise and a client base of over 900 corporate clients, MakeMyTrip is positioning itself to redefine the corporate travel and expense management landscape in India.
Rajesh Magow, co-founder and Group CEO of MakeMyTrip, expressed confidence in the move, saying, “The acquisition of Happay’s brand and expense management platform is a natural next step in our strategy to lead this space.” The combination of MakeMyTrip’s existing platforms—MyBiz, which serves small and medium-sized businesses, and Quest2Travel, tailored for large enterprises—with Happay’s solutions will allow the company to better meet the needs of a growing corporate customer base.
MakeMyTrip’s corporate travel solutions already serve over 59,000 businesses via MyBiz and 450 large corporates through Quest2Travel. The acquisition of Happay will only expand this reach, offering new capabilities in the expense management space.
A Strategic Move for CRED’s Focus on Payments
Interestingly, while MakeMyTrip is acquiring Happay’s expense management business, CRED is retaining Happay’s payments business. This strategic decision allows CRED to continue its focus on developing and scaling its B2B payment solutions. The payments vertical, which recently launched solutions on Bharat Connect in collaboration with the National Payments Corporation of India (NPCI), will remain with CRED to further enhance its market-leading business payments products.
Kunal Shah, the founder of CRED, elaborated on this shift, stating, “Our focus at CRED is on developing products that enable financial progress. By enabling each vertical to play to its strengths, we’re positioning both teams to scale in their domains.” While CRED will be parting with Happay’s expense management platform, the company is confident that its payments team will continue to thrive independently, aiming to transform the B2B payments experience into a more seamless and reliable solution.
MakeMyTrip’s Corporate Travel Ambitions
MakeMyTrip’s corporate travel offerings have been steadily gaining traction. The company already provides a suite of services tailored to different business needs. Through MyBiz, small and medium-sized businesses can access an efficient platform for managing corporate travel, while Quest2Travel caters to the needs of larger organizations.
The integration of Happay’s expense management services will allow MakeMyTrip to offer a more comprehensive corporate travel and expense solution. This move is part of a larger trend in India’s growing corporate travel sector, which continues to experience significant demand as businesses increasingly prioritize efficiency and ease of management.
Financial Outlook for MakeMyTrip
MakeMyTrip, listed on the Nasdaq, has seen strong financial performance. The company reported a revenue of $211 million for the second quarter of fiscal year 2025, a 24.3% increase compared to the same quarter in the previous year. Additionally, the company posted a profit of $17.9 million for the quarter ending September 30, 2024, a sharp rise from $2 million in the same period last year.
While the exact value of the deal remains undisclosed, industry insiders suggest that CRED might take a write-off on the transaction. However, with MakeMyTrip’s clear plans for integrating Happay into its corporate offerings, this strategic acquisition positions the travel giant to enhance its market leadership in corporate travel and expense management.
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