MakeMyTrip Will Acquire CRED's Happay Expense Management Platform to Improve its Business Travel Services

In a deliberate attempt to boost its corporate travel offerings, online travel operator MakeMyTrip has announced that it has purchased the Happay Expense Management Platform from banking behemoth CRED. Through this acquisition, MakeMyTrip will be able to broaden its range of corporate travel and expenditure management products, thereby positioning itself as the preferred platform for businesses looking to streamline their corporate travel needs.

Strengthening Corporate Travel Leadership

MakeMyTrip wants to dominate the business travel market by integrating Happay's expense management tools into its existing platforms. At the moment, MakeMyTrip serves over 59,000 corporate clients through its MyBiz platform, which is designed for small to medium-sized businesses, and over 450 large enterprises through Quest2Travel. The purchase of Happay, which allows businesses to manage spending and travel on a single, integrated platform, will enhance these offerings.

Rajesh Magow, co-founder and group CEO of MakeMyTrip, emphasized the significance of this acquisition: "By focusing on innovation and a faultless customer experience, we have consistently outperformed market growth in the business travel sector. Purchasing Happay's cost management platform and brand is the next sensible move in our strategy to control this market.

By incorporating Happay's offerings, which cater to over 900 corporate clients, MakeMyTrip will be able to further redefine the norms in corporate travel and expenditure management across India, Magow continued.

CRED Preserves the Payments Firm

Happay is a set of tools that makes cost management, reimbursements, and corporate spending more efficient. Anshul Rai and Varun Rathi launched it in 2012. In 2021, CRED paid a total of $180 million to acquire Happay. The current agreement states that CRED will retain the Happay payments business, including its technology stack and B2B payment solutions, while MakeMyTrip will acquire the Happay Expense Management Platform and its employees.

"At CRED, we're focused on creating products that promote financial advancement," said Kunal Shah, the company's founder, in response to the agreement. By letting each vertical concentrate on its strengths, we are positioning both teams—Happay's expenditure management platform and our payments business—for future growth and innovation in their respective domains.

Expanding MakeMyTrip's Corporate Services

MakeMyTrip, the business behind popular online brands like Goibibo and RedBus, currently offers a variety of travel services, including airline tickets, hotel reservations, holiday packages, rail and bus tickets, car rentals, and FX services. Through the integration of Happay's cost management systems, MakeMyTrip will be able to provide corporate clients end-to-end services, such as trip reservations and expenditure tracking.

The deal is expected to close within the next ninety days, solidifying MakeMyTrip's place in the rapidly growing business travel industry.

Sturdy Financial Performance and Future Growth

MakeMyTrip has demonstrated strong financial performance, as seen by its 24% year-over-year revenue increase to $211 million in the second quarter of this fiscal year. Additionally, compared to the previous year, the company's profits increased significantly, rising from $2 million to $17.9 million.

By integrating Happay's expertise into its corporate travel and expense management products, MakeMyTrip is well-positioned to maintain its leadership in India's competitive corporate travel market while promoting innovation and growth for its business clients.