Stock prices are no indication of how a company is performing, said Deep Kalra, CEO and founder of Indian OTA MakeMyTrip (MMT) at the opening session of the WIT conference on October 21.
Once the disruptor, MMT took the world by storm with a phenomenal IPO listing on NASDAQ in 2010. Despite falling share prices, Kalra presented an optimistic outlook on the future of the firm and of India.
“While our stock price has been under pressure, I’m not convinced this is the best indicator of the company’s health. We’re very positive about how we’ve shifted the business,” he said. Kalra was referring to MMT’s shift from purely airlines to include hotel bookings as well. The OTA now earns an almost equal amount of revenue from both segments.
In his session, Kalra emphasized the importance of the mobile internet market, attributing the opening up of the Indian market to significant user uptake. Two years ago, only 110 million Indians were online. Now, Kalra believes there are 300 million accessing the internet on mobile. By 2017, the number is projected to reach 500 million – good news for MMT, as not everyone can afford to stay in a fancy hotel, but they can certainly afford a bus or rail ticket, said Kalra.
Internally, MMT splits its mobile and desktop business, with the former taking up to 80 percent of company resources – a clear indication of where the OTA expects Indian consumers to go. In fact, Kalra describes the rise and rise of mobile usage as an opportunity to disrupt the market. Though well established, MMT now has to “think like a new company”.
Kalra takes a broad view on competition, believing that Cleartrip is not the only other player in the market. “I respect Cleartrip…but I think there are potentially new players. If you look at the competitive landscape two years ago it’s very different from what it is today.”
He added, “Our biggest competitor could be someone in their twenties.”
By focusing on its core market, MMT has been able to establish a foothold and cater to its customers. The Indian market, said Kalra, is fundamentally different. This is why he believes there is “space to compete with the likes of TripAdvisor.”
“Reviews by Indians, for Indians,” he said, will resonate better with the market.
When asked for advice for budding entrepreneurs, Kalra offered the following: don’t give up too early – in fact, don’t look in the rearview mirror until three or four years later. When you’re running on passion, your ability to convince people of where you’re going is paramount. Fundamentally accept that there are many things you don’t know and have to learn. Take signals from around you. Play to your strengths – ignore weaknesses.
In Kalra’s words, rebooting his career happened organically. “You just evolve and grow.”
