MakeMyTrip’s Planned Acquisition of Quick Ride
MakeMyTrip is discussing the potential acquisition of the car and bike pooling platform Quick Ride, according to sources acquainted with the situation. The transaction is currently undergoing due diligence, with both parties reviewing the business and addressing the finer points of the proposed deal.
Details of the Acquisition
As per the sources, the acquisition process is being facilitated through redBus, and it is expected to involve a combination of cash and equity. This prospective acquisition may enable MakeMyTrip to enhance its footprint in urban mobility and bolster its offerings for corporate commuting. redBus already operates rPool, a carpooling service that links verified professionals commuting along similar paths, allowing users to find or offer rides for daily travel.
Strategic Benefits of Acquiring Quick Ride
Acquiring Quick Ride would position MakeMyTrip to tap more effectively into the carpooling domain and enhance its commuter network. Another source indicated that this move would further strengthen the company’s standing in urban mobility.
Timeline and Financial Structure
The timeline for completing the deal is currently unclear, and the terms may evolve as negotiations continue. Quick Ride, founded in 2015 by KNM Rao in Bengaluru, links commuters travelling along parallel routes for car and bike pooling, while also providing solutions for corporate employees’ daily commute needs.
Funding Background of Quick Ride
Quick Ride has attracted investment from Sequoia Capital India (now known as Peak XV), Naspers, which is now part of Prosus, and Venture Highway. According to a previous report by Inc42, the firm raised Rs 100.78 crore (approximately $14.4 million) in its Series B funding round in 2019 from these existing backers. Additionally, it also secured an undisclosed sum in its Series A round from the same investors.
The ownership landscape of Quick Ride has shifted notably over the years. Naspers held a 20.81% stake in 2020, while Venture Highway had a 6.50% stake. Based on regulatory filings examined by Startup Superb, Naspers’ stake has declined to about 0.10%, and Venture Highway is no longer noted as a major shareholder. The reasons behind these reductions in stake are not clear, and it remains unknown if they stemmed from secondary transactions or other shifts in the company’s shareholding structure.
MakeMyTrip and Quick Ride’s Response
MakeMyTrip has chosen not to provide comments regarding the potential acquisition. Furthermore, multiple attempts to receive a response from Quick Ride’s founder went unanswered by the time of publishing.
In February 2021, Startup Superb revealed exclusively that Sequoia Capital India had exited Quick Ride through a secondary transaction. This investor had supported the company through both the Series A and Series B funding rounds. A source disclosed at that time that Sequoia withdrew 40% to 50% of its investment from the two rounds.