Stock market is always full of surprises, and right now, all eyes are on EaseMyTrip. The travel-tech company, which has made quite a name for itself in India, is facing some turbulence, and it’s all because of one of its co-founders selling off a big chunk of his stake.
Recent Share Price Movements
If you’ve been following the markets, you’ve probably noticed the decline in EaseMyTrip’s share price over the past few weeks. As of today, the stock price stands at ₹13.72, a sharp contrast from its highs of the past year. The stock has seen a steep correction of 19.42% year-to-date (YTD), which has many investors scratching their heads (some more than 10 lac people).
EaseMyTrip was founded in 2008 by Nishant Pitti, along with his brothers Nishant and Rikant Pitti, as an online travel agency offering everything from flight bookings to hotel reservations. Over the years, they have built a solid reputation, and their IPO in 2021 was a huge success. The company seemed to be on a fast track to growth—until recently.
Impact of Stake Sale
Since Nishant Pitti has started selling his shares, there’s been a noticeable dip in the company’s stock price. While it’s not uncommon for founders to sell shares, the consistent offloading by a major shareholder tends to raise some red flags. After failing to do a bulk deal to sell his shares, Nishant Pitti has (again) assured investors that he won’t sell now. He’s made similar promises in the past.
Investor Concerns
In the stock market, perception is just as important as reality. Nishant’s move has led to some market jitters, and many are now questioning whether the company is facing trouble behind the scenes.
Recent investments
It’s also worth mentioning that the company’s management has tried to assure investors that there’s no cause for concern. Plus they have been investing everywhere since last 1 year.
Over the past year, EaseMyTrip has strategically diversified its business portfolio through several key investments:
- In September 2024, EaseMyTrip announced a ₹200 crore (approximately $23.8 million) investment to venture into electric bus manufacturing.
- In September 2024, EaseMyTrip acquired a 49% stake in Pflege Home Healthcare, a Dubai-based medical tourism provider, and a 30% stake in Rollins International, a company specializing in wellness and healthcare products.
- In April 2024, EaseMyTrip invested ₹33 crore (approximately $4 million) for a 4.94% stake in ETrav Tech, a B2B travel portal offering advanced travel APIs.
- Earlier in 2024, EaseMyTrip ventured into the insurance sector by establishing EaseMyTrip Insurance Broker, a subsidiary designed to address customer needs through specialized insurance products.
The remaining founders, including Rikant (current CEO), have continued to hold significant stakes, and they’re actively involved in growing the business. Plus, the company’s revenue growth and strong presence in India’s booming online travel market are still points of optimism.
One thing’s for sure: this situation has sparked plenty of conversation, and the future of EaseMyTrip will be interesting to watch.
Stay tuned as we keep an eye on how this plays out in the coming days.
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