Prashant Pitti, the co-founder of EaseMyTrip, discusses how his entrepreneurial journey began and why the company has remained strong even during the worst of times.
The sudden outbreak of the deadly virus affected hotels, airlines, cruise lines, and online travel agencies (OTAs). According to statistics, global lockdowns resulted in a 49% decrease in travel activity, costing the travel industry nearly $4.5 trillion (£3.7 trillion). When there was a global travel ban, it was difficult for the OTAs to stay in business. However, one company survived even during this period. That company was EaseMyTrip, led by the Pitti brothers. EaseMyTrip not only became a unicorn, but it also went public, raising Rs 510 crore through an IPO. Prashant Pitti, its co-founder, sits down with Sahil Sachdeva, the founder of Level Up PR, to talk about establishing EaseMyTrip and taking it to uncharted heights.
Edited excerpts from the interview are —
Sahil Sachdeva: Tell us about your college and work life before starting EaseMyTrip.
Prashant Pitti: I come from a humble background. I was raised in a middle-class family in Delhi. I was a huge fan of sports in my childhood. But as I grew older, I focused on my studies and was accepted into IIT Madras. From there, I landed a well-paying job in the United States. So I went to work for Capital One in the United States for over two years. Then, I moved to Chicago and worked for HSBC for about a year. Quit, and returned to begin my entrepreneurial journey, and joined my two brothers who had already started EaseMyTrip.
Sahil Sachdeva: What prompted you to embark on your entrepreneurial journey?
Prashant Pitti: I’d always known I wanted to be an entrepreneur. There was never any doubt. When I arrived in the United States, almost everyone applied for a green card right away, but I didn’t. I knew I needed to return to India.
I was a staunch opponent of people leaving India. In college, I was always telling everyone to stay in India. I used to argue with my friends about the importance of creating jobs in India. This is in 2005 when the entrepreneurial world did not exist. But I got a job with a company that only hires 4 students out of 3000 each year. How do you leave after 26 rounds of interviews? But the desire to start my own business remained. So, I came back and embarked on my entrepreneurial journey by establishing EaseMyTrip.
Sahil Sachdeva: EaseMyTrip has two other co-founders, who are also your brothers. What is your role in the company?
Prashant Pitti: Your company can be divided into three components: supply, execution, and demand. Nishant, one of the brothers, therefore, is responsible for supply. Rikant, the other brother, is responsible for technology and execution. And I am responsible for the demand, which includes marketing and investor relations.
Sahil Sachdeva: What is the secret to your success, turning into a unicorn and going public?
Prashant Pitti: The story of EaseMyTrip is one of slow and steady winning the race. We have collected Rs 260 crore through business operations while maintaining profitability for the entire 13 years. We are designed to endure, thrive, and be around for a very long time. Because of our tenacity, even in the Covid-19 year of FY21, which served as the benchmark for all travel agencies, we generated a profit of Rs 88 crore before taxes. We will undoubtedly continue to exist for the next 50 years. Thanks to the hard work of the last 13 years.
Given that we were one of the first internet companies to go public, we had no idea what we were getting into. Before now, internet companies only considered becoming listed on NASDAQ. We decided to go a different route and list in India because we understood that while doing so might result in a lower valuation than on NASDAQ, it will undoubtedly result in significant branding and marketing efforts. That is precisely what took place. Our value has increased significantly as a result of being listed in India.
Sahil Sachdeva: What is your vision for the next 3-5 years for EaseMyTrip?
Prashant Pitti: With a 22% market share, EaseMyTrip has grown to become the second-largest travel portal. Now, to become the number one player, we must double in size. As a result, we expect to become market leaders in the next three years, but profitably. That is the company’s goal for its India operations.
We recently realized that we can run our operations without even charging consumers a convenience fee. As a result, we tested this model in Dubai and launched EaseMyTrip.ae, which has grown rapidly. It has grown from $100K per month to $2.5 billion per month in just 6 months without spending any money on marketing. This is because EaseMyTrip.ae does not charge a convenience fee. So, to grow, we are concentrating our efforts in the Middle East and Europe, where the convenience fee is very high.
Our goal now is to become a global ticketing company operating out of India and to expand not only in India but also globally. We’ve already begun to expand in Thailand, London, and the UAE. It would be the US in the following 20 years. These are the markets that we have specifically chosen to serve the locals.
Because of our low-cost approach and high efficiency, we will be able to grow in other geographies profitably.
Sahil Sachdeva: Are there any new verticals that you plan to add?
Prashant Pitti: We have already acquired three companies and are in the process of acquiring more. We are clearly the leaders in the air travel space in India, but there are other areas where we are growing inorganically, such as buses, trains, hotels, and cabs. Acquisitions provide inorganic growth. All of these divisions are also growing organically. Each year, our numbers increase by twofold.
Sahil Sachdeva: Finally, I’d like to know what one thing you know to be true and share with others.
Prashant Pitti: I have always thought that since you only have one life, you should pursue your interests. Instead of telling yourself not to do something you like, you should give it a try. So always take chances. And I believe that the world rewards people who take risks. Because the majority of people don’t take risks, this is the norm. So be aware that taking big risks is always rewarded in the world.