Sachin Salgaonkar: Got it very clear, Rajesh. Second question, and it’s just taking from where you left. Clearly, demand is good and some new cases are coming. So does that mean MakeMyTrip doesn’t have to spend so much on marketing going ahead? And as a percentage of GMB, it could be much lower than, let’s say, the earlier guided 5%?
Rajesh Magow: Go ahead, Mohit. Go ahead.
Mohit Kabra: Maybe I can take that. And we’ve largely remained, within the 5% kind of a guidance that we had rolled out, Sachin, through the year. And therefore, I believe that continues to hold good. I mean overall if you really see this quarter also, and generally, we tend to do this, if you look at historically also, during peak seasonality quarters, like Q1 and Q3, we generally tend to kind of, spend a little more on the brand marketing side, and which is what we have seen even during this quarter. But even with that, the overall spends came in at about 4.9%. And still kind of, well below the 5.3% in the same quarter previous year. So I guess the 5% kind of a ballpark number should be a good number to kind of keep in mind, at least for this year. And we’ll continue to see if we can kind of keep building efficiencies, some efficiencies with the scale in the coming years as well.
Sachin Salgaonkar: Got it Mohit, very clear. And my last question, and anecdotally, I’m sure you guys also want to seeing it, there is generally also a school of thought is coming that travel, traveling around is becoming expensive in India. For example, in New Year traveling to Goa was a bit more expensive than let’s say going towards Thailand or Bali. Is that something a risk what you guys are seeing, which could potentially impact some demand? And how do you guys, think in that direction?
Rajesh Magow: I would say Sachin, I think we should see this scenario more from a healthy competition between the destinations. Now, whether it is going to be a domestic market destination or an international market or comparable to domestic destination for that matter, are in the peak period, I don’t think this will have an impact on demand. It would, it would actually in turn mean that, there will be healthy competition between the markets. And from that point of view, because I don’t think that’s going to impact the travel demand. Because if let’s say all three, hypothetically, comparable destinations are pretty expensive, then people will still travel, but they might go to a, their plan B destination, but it may not mean that they would not travel.
So I don’t see that scenario happening given at least based on whatever patterns that that we’ve seen in emerging, and which therefore would mean is that, every in the ecosystem, people would start to sort of look at specific markets would start to look at all the data and accordingly price their products, rather than, sort of taking one destination as a threat to the other. I think that is what is likely to happen, rather than overall, because it’s expensive, and therefore I would not really travel.
Sachin Salgaonkar: Very clear, Rajesh. Thank you and all the best.
Rajesh Magow: Thank you. Thank you, Sachin.
Vipul Garg: Thanks, Sachin. The next question is from the line of Aditya Suresh of Macquarie. Aditya, you may please ask your question now.
Aditya Suresh: Hi, thank you so much. I have a few questions. The first one was on the B2B PC, you spoke a lot about on the B2C side, but on the B2B segment, you’ve seemed to have kind of scaled that have a partnership with Zoho as well. Rajesh, would you mind kind of giving us an update here on that segment and what that may mean for, whether that be growth or kind of the impact on working capital and the likes? I’ll be really curious to understand that. Thank you.
Rajesh Magow: Yes, sure, Aditya. No, I think it’s a good question. And I think we gave a couple of data points to give an indication of how our corporate business is growing. And just from an outlook standpoint, I do see, there is headroom for growth there. There’s actually good headroom for growth there. And the way we, our product has been sort of recognized in the market, for whatever it’s worth, just from a voice of customer standpoint, we feel very confident that this definitely is going to add more and more sort of growth revenues for us both in the small and medium enterprises as well as in the large enterprises for both the platforms that we have, whether it is MyBiz or Quest2travel. And the other point I would also make is that what we are trying to do on the product side, just enhance, just continue to keep enhancing the experience significantly just based on feedback, keep sort of adding more features for our B2B customers, which is a delightful experience for them.
And basis that we have our retention rate which is like benchmarked with the world class B2B outfit already. And we’ll continue to keep doing that on two counts. One, adding more products and more use cases so that it becomes a one stop platform for the corporate. And the second is like the way conceptually we do personalization on B2C, use that concept to actually do a personalized customer experience for the corporate travellers, which would be very different than B2C because the behavior when you buy your own travel for your personal purpose is very different than what you end up doing it as part of your work trip on any of the corporate booking platform. And we have great insights on that and we are focusing on that and just enhancing the customer experience significantly to make it very smooth and easier for the corporate travellers.
So on those two areas, we’ve been working very hard and we continue to keep sort of rolling out new features. So therefore, looking at the growth that we already have, the acquisition engine that has already been established, and how the wallet share is sort of increasing and the fact that our product will continue to keep improving to become world class, I definitely believe there is a lot of headroom for growth for us in the B2B segment.
Mohit Kabra: To your other part, which is on the working capital, capital and the overall margins on the B2B side, the way we’ve kind of put these platforms in place, we’re kind of significantly leveraging technology, particularly the core B2B, which is the corporate driven platforms, because the other platforms, which are the ones which are powering the small travel agents or say the affiliates, those are more extension of the B2C platforms, right, B2BC kind of a platforms. And on these corporate platforms, I think we’re kind of seeing that we are kind of gaining very good traction both with the small and medium enterprises as well as with the large corporates. So growth is coming in good. From an opportunity sizing point of view, like we have said, at least one fourth, if not one third of the market would be kind of largely business driven or corporate travel demand.
And therefore, there is a long or big headroom to kind of keep making gains in this area. And with the unit economics kind of addressed to kind of meet B2C like kind of net margins, growth should come in kind of accretive both at the top line and the bottom line. And on the working capital side as well, we don’t really kind of deploy working capital on the B2B side because like I said, these are largely kind of pay and kind of transact kind of setups that we have created without having to invest significantly in working capital for getting B2B businesses.
