EaseMyTrip, one of India’s leading online travel agencies, has undergone a significant leadership change. Co-founder and CEO Nishant Pitti has resigned, effective January 1, 2025, citing personal reasons. Rikant Pittie, his brother and fellow co-founder, has been appointed as the new CEO. Rikant previously served as the company’s Chief Financial Officer (CFO) and Executive Director.
Nishant’s departure is accompanied by reports of his plans to sell his remaining 14.21% stake in the company through a block deal, potentially valuing the shares at approximately ₹780 crore.
Under Nishant’s leadership, EaseMyTrip pursued diversification strategies aimed at expanding its business scope. Recently, the company ventured into study tourism by acquiring Planet Education Australia, aiming to offer comprehensive educational travel services. Additionally, the company announced its entry into the electric vehicle bus market under its subsidiary, Easy Green Mobility, with plans to invest ₹200 crore over the next two to three years.
While these initiatives signify bold moves towards diversification, they have posed challenges to the company’s financial stability. For the quarter ending September 30, 2024, EaseMyTrip reported a 45% decline in consolidated net profit to ₹26 crore year-on-year, despite a modest 2.1% growth in net sales to ₹140 crore. Higher expenses from recent acquisitions contributed to the reduced profitability, as revenue growth from these ventures remains gradual.
Our Opinion on the News
The leadership change marks a crucial juncture for EaseMyTrip. Rikant Pittie, with nearly 15 years of experience across the travel, tourism, and technology sectors, is well-equipped to take on the CEO role. His prior responsibilities as CFO and Executive Director have given him a thorough understanding of the company’s strategic direction.
EaseMyTrip’s diversification into study tourism and electric vehicles reflects its ambition to broaden its market presence. However, declining profitability highlights the importance of ensuring these expansions contribute positively to the bottom line. Rikant Pittie’s leadership will be critical in optimizing operations and driving sustainable growth in a competitive industry.
Shareholders and industry watchers will be closely observing Rikant’s next steps as the company navigates this transformative phase.
Source: Entrackr