EaseMyTrip allots $26.7m shares for healthtech, travel stakes

EaseMyTrip’s board has approved issuing 12.57 crore equity shares worth 229.03 crore rupee (US$26.65 million) to various entities and individuals through preferential allotment for non-cash consideration.

The move is part of its strategy to acquire stakes in new ventures and diversify into new segments.

Allottees include Jeewani Hospitality, Rollins International, Pflege Home Health Care Center, and Planet Education promoters Gagandeep Singh and Sanket Champaklal Shah.

Collectively, they will hold a 3.42% stake in the company.

EaseMyTrip is also expanding into the charter aviation sector with a 49% stake in Big Charter Pvt Ltd.

Despite expansion, the company’s Q3 FY25 profit after tax dropped 26% YoY to 34.02 crore rupee (US$3.96 million), with revenue falling 6% to 150.56 crore rupee (US$17.52 million).

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Travel companies diversify to offset industry volatility

EaseMyTrip’s recent acquisitions reflect a broad industry pattern where online travel agencies seek to stabilize revenues beyond cyclical travel bookings.

The company has acquired stakes in multiple non-travel sectors including healthcare (Rollins International, Pflege), hospitality (Jeewani), and education (Planet Education) at a time when its core business faces challenges with Q3 FY25 revenue declining 6% year-over-year to INR 150.56 Cr 1.

This diversification strategy mirrors approaches from larger OTAs globally, who spent significantly on expanding their service offerings in 2024 to reduce reliance on a single revenue stream 2.

Despite the revenue decline, EaseMyTrip has seen a 172% year-on-year increase in hotel bookings, indicating that diversification within travel verticals is already showing positive results 1.

The market appears to support this strategy, with shares jumping 8.09% following the announcement, suggesting investor confidence in the long-term benefits of diversification despite short-term profitability challenges.

2️⃣ Strategic expansion into pilgrimage tourism and medical travel

EaseMyTrip’s acquisition of Jeewani Hospitality for a 50% stake specifically targets Ayodhya, aligning with India’s growing religious tourism market following the Ram Mandir inauguration.