MakeMyTrip to scale up financial services biz as it eyes wider user base

Currently the products are only sold to those buying tickets, hotel accommodation on its site. But now it will be offering insurance products even to those who don't

MakeMyTrip (MMT) is scaling up its financial services business to widen its customer base, increase presence in semi urban areas and improve its profit margins.

India’s largest travel portal began selling financial services products such as travel loans and insurance during the pandemic under a separate entity called TripMoney. The initiative was launched as the company looked to weather the business disruption. Now two years on the company is targeting growth.

Currently the financial services products sold on  MMT or subsidiary Goibibo websites are available for its customers only. However now the company will be offering insurance products for even those who do not purchase air tickets or hotel accommodation on its platforms.

“We want to open financial services to other customers through a direct channel. We will have a TripMoney app soon,” said MMT’s group chief executive officer Rajesh Magow. It will also offer forex cards.

The company has tied up banks, insurance companies and NBFCs for the services. In the past 12-15 months the company sold around two million small sized insurance policies that offered coverage for quarantine expenses, home protection and mobile thefts during trips. Magow said the book now pay later scheme (BNPL) facilitated five lakh trips and has a monthly offtake of around Rs 25 crore.

According to him, the BNPL scheme will be a growth driver for the financial service business and the company sees a market for such products especially in semi urban areas.

MMT’s chief technology officer Sanjay Mohan said the company is using technology and data to better customer experience and make it easier for them to avail financial services.