Earnings Call Transcript - MMYT Q4 2022

Vipul Garg, Vice President, Investor Relations

Hello, everyone. I'm Vipul Garg, Vice President, Investor Relations at MakeMyTrip Limited. And welcome to our fiscal year '22 - and fiscal year '22 Fourth Quarter and Full Year Earnings Webinar. Today's event will be hosted by Deep Kalra, our company's Group Chairman and Chief Mentor, joining him is Rajesh Magow, our Co-Founder and Group Chief Executive Officer; and Mohit Kabra, our Group Chief Financial Officer. As a reminder, this live event is being recorded by the company and will be made available for replay on our IR website shortly after the conclusion of today's event. At the end of these prepared remarks, we will also be hosting a Q&A session. Furthermore, certain statements made during today's event may be considered forward-looking statements within the meaning of safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance, are subject to inherent uncertainties, and actual results may differ materially. Any forward-looking information relayed during this event speaks only as of this date, and the company undertakes no obligation to update the information to reflect changed circumstances. Additional information concerning these statements are contained in the Risk Factors and Forward-Looking Statements section of the company's annual report on Form 20-F filed with the SEC on July 13, 2021. Copies of these filings are available from the SEC or from the company's Investor Relations department. I would like to now turn over the call to Rajesh for his remarks. Over to you, Rajesh.

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Thank you, Vipul. Welcome, everyone, to our fourth quarter and full year earnings call of fiscal 2022. I hope everyone joining us today is keeping safe and healthy. India went through the third COVID wave with the Omicron variant that started in December 2021 and continued during January and February. While the reported cases were high, the severity of infection was low compared to the delta variant, aided by significant vaccine coverage, which has now crossed about 1.9 billion doses. Travel slowed down with the onset of Omicron but picked up again later in the quarter when Omicron started to recede. Demand started to come back, especially for leisure segments, albeit momentum remained under pressure due to inflationary pressures from increased fuel prices leading to high airfares. This full fiscal year overall was the second pandemic-impacted year for the travel sector, with robust recovery phases in between waves. However, what is encouraging now is that pandemic-related movement restrictions have been lifted across India and largely in the rest of the world, except China, leading to travel returning to near normal. Consumer sentiment for travel, especially leisure travel, is quite positive right now, with more and more people looking to travel for vacations in 2022. The Government of India also opened commercial international flights from March 27, which is helping to revive international travel demand. In fact, as we enter the summer holiday season, we are witnessing pent-up demand for both domestic and international leisure travel. While the interest and demand momentum have been strong, we remain watchful of geopolitical crises, inflationary pressures, and their ripple effects on the overall economic environment and travel demand in the future. As highlighted earlier, there has also been a significant improvement in online buying behavior during the pandemic, leading to growth in internet users across all demographics. As a result, while other e-commerce categories have seen accelerated growth in the number of transactions, we expect the online travel sector to benefit from this shift in the future as things normalize and more and more people start to travel. Currently, there are 622 million active mobile internet users in India, expected to grow to about 900 million by 2025, driven by smartphone penetration. Similarly, the online shopper base is expected to reach 220 million by 2025 from the current base of about 160 million. We are also aiming to increase our online penetration to bring new users to transact on our platform, continuing to focus on and grow our leading travel use cases of air, hotels, and packages, including alternative accommodations and buses, while also investing in adding and growing other travel and adjacent use cases in line with our vision to be the travel super app. We recently expanded our rail and intercity cab booking services with RedRail on the RedBus platform, and an independent RedRail app to make our RedBus platform a comprehensive ground transport services platform. This will help make booking any of the services super convenient for our ground transport travelers. We also believe both rail and cab offerings will be significant sources of new customer acquisition in the coming years. In terms of targeting new travel growth segments, apart from deeper penetration to Tier 3 and Tier 4 cities on the B2C side, we are now aggressively growing the B2B corporate travel segment with our SME and large enterprise product solutions via myBiz and Quest2Travel brands, which are becoming increasingly popular with clients. In addition, we are also driving B2B2C demand through our myPartner and My Affiliate Solutions. Coming to the highlights of Q4, during the reported quarter, despite headwinds and a slowdown in business compared to the previous quarter, we ensured sustained profitability in operations with gross bookings touching $1 billion. In our air business, we continue to maintain our leadership position, gaining market share, with our share in Q4 '22 at 30.1% compared to 29.7% in Q3 fiscal year '22. For domestic traffic, leisure destinations like Srinagar, Dehradun, and Leh have shown more than 100% recovery. High airfares due to increased fuel prices affected demand momentum to some extent, but we continue to see steady recovery on the back of pent-up demand in leisure travel during the summer holidays. International flight daily departure supply has also now started to scale in April 2022. Nearly 65% of the capacity has come back overall compared to January 2020, which is pre-pandemic. U.S., Maldives, and Nepal are key destinations where capacity recovery has reached 100%, while UAE is at about 85% of recovered supply levels. As restrictions ease further, demand recovery will be led by popular destinations for Indians like Thailand, Malaysia, Singapore, Indonesia, Dubai, Maldives, and all of Europe. Coming to our hotels, packages, and alternative accommodations business, the demand pattern was not any different from January and February months, but the first two months were somewhat impacted by Omicron. We saw steady recovery starting in March due to leisure travel, weddings, social, and corporate events. The supply of rooms has started to stabilize, and we have seen steady demand recovery across all price segments. Most leisure destinations are already clocking volumes above pre-pandemic levels, and the outlook for Q1 remains strong. We continue to improve our product offerings and bring more hotels online. We have listed hotels from 1,600 cities compared to 1,300 cities in fiscal year '20. This extensive inventory is helping us bring new users from Tier 3 and Tier 4 towns to our platform. We have further improved the experience for our Luxe collection of super premium properties, offering Luxe packages that deliver more value to customers and bring additional revenues for the hotels. These value-added services have been well received by our customers. One trend that will continue to remain strong is the preference for alternative accommodations and short breaks. People are opting for Staycations in home spaces such as villas and holiday homes. We continue to invest and grow this business. Total active properties on our platform have now increased to more than 34,000, and we have witnessed a 70% increase in home stay listings from Tier 2 cities and unexplored destinations over pre-pandemic levels. Home stay is a key segment for us from a strategic point of view and is one of the fastest-growing segments. Our holiday package business was slow at the start of the quarter, like other businesses, but we were able to grow month-on-month, and currently, this business is already above pre-pandemic levels. Majority of travel during the first half of Q4 was dominated by domestic destinations, where international travel started to pick up towards the end of the quarter. During the quarter, Kashmir, Himachal, Andaman, Goa, and Northeast were destinations that contributed to about 85% of the domestic demand. This trend seems to continue for Q1 as well, with an addition of destinations like Ladakh. For the international destination, the demand was mainly dominated by Maldives and Dubai. However, with easing of restrictions, Europe also started picking up towards the end. Going ahead into Q1, the demand trends are similar with the addition of new destinations such as Mauritius and Bali. Coming to our bus ticketing business, Q4 saw a steady recovery post the third wave. Demand is expected to pick up further in the April to June quarter due to school vacations and the reopening of offices, especially in the IT sector. Inventory will bounce back further, particularly in the southern region. Toward the end of Q4, we also saw green shoots on new fleet addition from operators in a few states. This is a silver lining, as operators have shown interest in new fleet addition for the first time since March 2020, which bodes well for both inventory expansion and improvement in our Net Promoter Score. On the product side, we have enabled bus operators to cross-sell add-ons in booking and post-booking touchpoints. In the first phase, operators can enable food-related add-ons, and this will be extended to other categories such as luggage and travel essentials in the current quarter. Primo, our program for top-rated sellers, which aggregates the best-rated services, is shaping up well. We have close to 2,450 physically branded buses on the road across the length and breadth of the country, helping us create robust brand awareness. There have been several new initiatives to differentiate the Primo experience, including three red burst lounges that are live across the top boarding points nationwide. Other ground transport use cases, which include rail and intercity cabs, continue to witness strong growth in both seats and gross bookings value despite the Omicron impact. Ground transport contributed to 27% of the overall new users acquired on MakeMyTrip and Goibibo platforms in Q4. A significant part of this new traffic comes from non-English-speaking Tier 3 and Tier 4 cities, expanding the reach of our offerings to new geographies and user segments. We are already witnessing strong growth in our rail bookings business. We recorded a 66% growth in seats in Q4 fiscal year '22 over Q4 fiscal year '21, surpassing pre-COVID levels. During the quarter, we launched the standalone RedRail app, which is the lightest in the industry, targeting the Bharat user base. The app has already seen 160,000 downloads in the first 30 days of launch, with 75,000 active users. Ride by RedBus, our curated and certified intercity cab offering with quality vehicles and trained drivers, is also piloting in two big cities, Bangalore and Delhi, where 21% of our overall bookings originating out of Delhi and Bangalore are now ride certified. The driver application, which is a key component in the post-booking experience, has been enhanced to allow for detailed tracking and auditing of ride promises, such as drivers wearing uniforms and masks, and clean cabs. All three of our brands, MakeMyTrip, Goibibo, and RedBus, continue to enjoy high brand recall and consideration. We have industry-leading repeat rates. For Q4, over 70% of transactions were completed by existing customers, clearly showcasing the strength of our product experience and brands. Coming to our expansion in GCC, Q4 has been a strong quarter for GCC with our continued focus on efficient customer acquisition by enhancing our customer proposition and competitive advantage. While COVID affected growth, the region is bouncing back and is expected to recover to pre-pandemic levels in 2022. For the quarter, GCC business grew by 52% quarter-on-quarter. Our travel-focused fintech platform, TripMoney, is shaping up well, and we continue to invest and expand our offerings. We have introduced a 'buy now pay later' payment option for flights or hotels on MakeMyTrip, as well as the Goibibo app. TripMoney has established a marketplace, attracting 15 leading fintech players from NBFCs and banks to offer easy travel credit to travelers. The initial response to BNPL on the MakeMyTrip platforms has been encouraging, with a 60% growth in BNPL transactions quarter-on-quarter over the past year. TripMoney has also strengthened its position in the forex space by acquiring a majority stake in leading online currency exchange platform in India called BookMyForex. With this, TripMoney has a unique position in the industry as the only player in the travel fintech space to offer a suite of services, including INR-denominated global cards, multicurrency forex cards, foreign currency delivery across India, and instant foreign remittances. In terms of initiatives for non-direct B2C demand segments, myPartner is our product to empower offline travel agents. We have onboarded more than 25,000 travel agents. Net additions of new travel agents in Q4 were about 3,089. By the end of March 2022, overall agents had transacted at least once on the platform, and that number continues to grow steadily. We are bringing more value to the agents through product enhancements. During the quarter, we launched a new onboarding page to empower faster and smoother onboarding for agents, and we also launched a detailed council section on the platform to facilitate faster reconciliation for travel agents. Our My Affiliate program is designed to power other online platforms for travel services. This initiative aligns with our outlook for the future. During the quarter, our exclusive partnership with Amazon Pay went live and PhonePe went live in April 2022. These partnerships aim to provide greater value for customers with access to MakeMyTrip's best-in-class flight and hotel offerings. There is an accelerated digital shift happening because of the pandemic, and through these partnerships, we will be able to extend our customer reach to Amazon Pay and PhonePe's large consumer base, especially in smaller cities and towns. Our aim is to make travel bookings extremely convenient for new adopters, thereby increasing the online penetration of travel bookings. Our technology investment in catering to corporate travel demand has started paying off as well, as people have begun returning to offices in greater numbers. Gross bookings for corporate business during fiscal year '22 grew by 266% year-on-year, driving the non-B2C mix to the high single digits. We acquired 262 key accounts and 502 SMEs on myBiz. During Q4, some of the key accounts that went live included Lenskart, IndiaMart, S.C. Johnson, ABP News, etc. On Quest2Travel, our active customer count has surpassed pre-COVID levels. Active customers on Q2D reached 155 in March '22 versus 114 in January '20. Some notable customers acquired during the quarter included Nika, Tata Medical, Mira, Tata Motors Finance, Primebox, etc. We continue to work on both our products to enable seamless integration with corporate systems and drive employee adoption. It is noteworthy that despite being a late entrant to the corporate travel segment, we have emerged as a significant player in this segment in terms of gross booking value and revenue. To conclude, consumer sentiment remains strong, especially for leisure travel. While the demand momentum could have been even stronger but for high fares and inflationary pressures, we are hopeful of full recovery to pre-pandemic levels in domestic travel demand by the first half and international travel demand by the second half of the upcoming fiscal year 2023. With this, let me now hand over the call to Mohit for financial highlights of the quarter.

Mohit Kabra, Group Chief Financial Officer

Thanks, Rajesh. Hello, everyone. I hope you are all staying safe and healthy. Online travel booking in India is still an under-penetrated market. Our aim is to continue to grow our offerings and bring more users on our platform via the newly built travel use cases while ensuring that high repeat rates drive profitability in our leading business segments. As reported earlier, during the last couple of years through the pandemic, we have adopted a two-pronged strategy on cost rationalization to drive better operating leverage. Firstly, we have made concentrated efforts towards long-term fixed cost reduction and secondly, brought in more efficiencies in our variable expenses, particularly customer acquisition costs. As a result of this, despite a 12.4% sequential decline in gross bookings versus the previous quarter, we maintained strong profitability and posted an adjusted operating profit or adjusted EBIT of about $12 million, adding back non-cash amortization and depreciation, the adjusted cash operating profit or adjusted EBITDA stood at about $15.5 million. For the full fiscal year FY '22, adjusted operating profit is at about $23.2 million compared to an adjusted operating loss of $18 million in the previous fiscal year and a loss of about $70 million in full year '20, which was the pre-pandemic year. Moving on to our business segments, during the quarter, air ticketing adjusted margin stood at about $44.8 million, representing a growth of 20.5% year-on-year in constant currency terms. This is the first quarter where we have seen growth over a pre-pandemic comparable quarter of Q4 FY '20 in the domestic air ticketing market. Considering that regular international flights have been restarted since March 27, the recovery in the international ticketing segment, which stood in the 40s during the reported quarter, is likely to improve in the coming quarters. With the strong recovery in air ticket business, margins have come back to pre-pandemic levels and stood at about 7.1% during the reported quarter. Our OTA brands, both MakeMyTrip and Goibibo continue to be the top two travel brands in the country, with a combined market share of over 30% in the domestic air ticketing business. Adjusted margin for our hotels and packages business stood at $42.3 million, witnessing a growth of 22.2% in constant currency terms. Just as in the air ticketing business, the recovery to pre-pandemic levels is much stronger in the domestic hotel bookings compared to international hotel bookings, which is likely to gather pace in the coming quarters with the reopening of regular commercial flights. The margins in this segment stood at 17.7% for the quarter and 17.9% for the full fiscal year. These are likely to remain stable in the 17% to 18% range. In our bus ticketing business, the adjusted margin stood at $12.4 million, registering a growth of 15.7% over the same quarter a year ago in constant currency terms. The RedBus brand continues to be a leader in the bus ticketing segment in the country. In the future, we plan to leverage this to make inroads into adjacent ground transport services like intercity cabs and rail bookings, as mentioned by Rajesh. Adjusted margin for other businesses during the reported quarter stood at $5.7 million, witnessing an increase of 13.6% over the same quarter last year in constant currency terms. Moving on to our operating costs, we continue to be prudent with our variable spending, especially in customer acquisition costs. Marketing and sales promotion expenses stood at about 4.5% of gross bookings compared to 5.6% in the previous quarter. Overall, with domestic business recovery under our belt, we are hopeful of international recovery gathering pace in the next fiscal year. To leverage this, we have launched the Great India Travel Sale to encourage travelers to book early in the ongoing seasonally strong summer quarter. While we continue to pursue organic growth, we keep looking for strategic acquisition opportunities to enhance our product portfolio or add technical capabilities. We are well-capitalized to pursue such opportunities. Last month, we announced the acquisition of a majority stake in India's leading currency exchange platform, BookMyForex, which will help us offer Forex services to our MakeMyTrip and Goibibo customers. With international travel reopening, Forex services are showing early signs of traction, and we expect growth momentum to increase as outbound travel recovers faster from here onwards. We will continue to look for investment opportunities in new growth areas that Rajesh has already outlined.

Vipul Garg, Vice President, Investor Relations

Thank you, Mohit. Anyone who wants to ask a question to the management can please click on the raise hand option, and we will take the questions. The first question is from the line of Gaurav Rateria of Morgan Stanley. Gaurav, you can unmute your line and ask your question.

Gaurav Rateria, Analyst

Hi. Congratulations on great performance. Am I audible?

Vipul Garg, Vice President, Investor Relations

Yes, Gaurav.

Gaurav Rateria, Analyst

Yeah. The first question is, typically, in a down quarter, where we see an impact because of various COVID waves, we have seen competition getting more impacted than MakeMyTrip. So has that been the case in the current quarter, which is what led to the market share increase? Has that kind of played out in the hotel segment as well?

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Hi, Gaurav, maybe I can take that. Historically, post-facto, when we look at all the numbers, or when you just compare them from the market, it probably is the case. I think it's a testament to our long-standing presence across the segments and the very high repeat trade we have on our platform. As I was mentioning in the script, our repeat rate is about 70% plus. So obviously, that is what we have seen as a trend historically. As far as this reported quarter is concerned, I guess we will wait and see, and it might as well be the case.

Gaurav Rateria, Analyst

All right. The second question is with respect to some of the partnerships that you talked about. It would be great to get some color on the kind of traction we are seeing there? How different is this from historical partnerships that we have had where no material progress happened? Do you expect this to really become big at some point?

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Again, a good question, Gaurav. Specifically, if you were referring to myAffiliate partners or the partnerships that we had with Amazon Pay, which we've gone live with, and we very recently went live with PhonePe as well. The objective of these partnerships is essentially to ride on the broader and wider customer reach to the deeper India that these platforms have by virtue of them being in those categories, which clearly helps reach our Tier 3 and Tier 4 cities. Early trends we've seen from the numbers indicate that new user contributions are coming more from Tier 3 and Tier 4 cities, which is very encouraging and aligns with our objectives. We have seen decent traction in the absolute number of bookings coming from these platforms, especially Amazon Pay because PhonePe is still new. But we should be able to share more insight on this in subsequent quarters. As far as Amazon Pay is concerned, I think one difference from the past partnerships we had is that this time around, the integration is deeper and more aligned with our brand. From a consumer point of view, individuals going on Amazon Pay get the benefit of the MakeMyTrip brand, with a consistent UI and product experience because the transaction occurs on MakeMyTrip. So the trust in our brand is naturally integrated with leveraging the broader base of traffic on these platforms.

Gaurav Rateria, Analyst

That's really glad to know that. Last question is to Mohit, on how should one think about the advertising and sales promotion expenses, especially in a normalized environment? I would assume that it should increase from the current levels where you did not require to spend much due to competitive intensity to a little bit increase compared to a down quarter like the March 2022 quarter?

Mohit Kabra, Group Chief Financial Officer

Yeah. I mean, you've seen that variability in multiple quarters that we have reported even during the current fiscal year. The recovery was better in Q3, and therefore the spend was slightly higher. The recovery in Q4 was marked by the Omicron variant, and we've seen lower absolute expenses and marketing and promotional expenses as a percentage of gross bookings. We continue to keep this broadly aligned with the growth momentum of recovery. Once we are well past the overall pre-pandemic levels, both on domestic and international, we will have better competitive expense levels. In the past, advertising expenses used to be about 9% to 10%. Currently, we see it trending around 6.5% to 7%, but it's too early to make a definite call on that. We'll take it one step at a time, especially now that we've nearly completed recovery in the domestic side, which makes up about 75% of our business.

Gaurav Rateria, Analyst

Great. Thanks a lot. And all the best.

Mohit Kabra, Group Chief Financial Officer

Thank you, Gaurav.

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Thanks.

Vipul Garg, Vice President, Investor Relations

Thank you, Gaurav. The next question is from the line of Prashant Katri.

Unidentified Analyst, Analyst

Yeah, hi. Thank you for giving me the opportunity. So I had questions on hotels as well as bus in terms of the growth that we've seen on the unit metric side. So hotels is just about 2% to 3% growth, while bus is actually a drop. Can you just explain what is happening there? Because I believe the market should probably be growing faster than that.

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Maybe I can take that, Prashant. No, your observation is not off. But the reason is, even historically, you would always see the overall recovery coming out of the waves. This quarter, mind you, was actually January and February. A large part of the quarter was impacted by Omicron. When we see the recovery, the first segment to recover is always flights, and then it starts with hotels, and then buses follow. Specifically for the bus segment, it is also linked to the reopening of offices, and we've only seen that happening very recently. Therefore, there are specific reasons why it takes a little bit more time, and that's exactly what we are currently seeing. It's just a matter of the recovery happening, albeit with a lag effect. We are currently seeing robust recovery in both hotels and buses in the current quarter.

Unidentified Analyst, Analyst

Okay. Thanks for that. And the other question was just on the profitability side. Any new thoughts on how much margin do we want to achieve by when? Investors are increasingly expecting higher profitability sooner rather than later. Any thoughts on improved guidance on that front would be great.

Mohit Kabra, Group Chief Financial Officer

Sure, Prashant. Our guidance for the last fiscal year was that considering the waves we have seen, we'd like to be in the plus or minus $10 million range. Highly impacted quarters could see small negative adjusted operating losses, while good recovery quarters may see us on the top end of that range. The last two quarters have kind of beaten the top end of the range of $10 million. This quarter was also higher than the previous quarter. While I don't want to rush into specifics, I will say it now depends on driving back the 100% recovery, including on the international side, and driving growth momentum beyond pre-pandemic levels. While doing so, we will focus on ensuring that operations remain profitable. We don't intend to rush in driving profitability as a percentage of gross bookings. Even hitting mid-single digit profitability on the net side would be our aim moving forward.

Unidentified Analyst, Analyst

Am I just that - I mean, our concern is that you’ve been in the business for 20 years and have yet to make a decent profit on the net bottom line. There would come a point where you may also get disrupted, and we would rather see some cash profits before that happens. This seems like a time window when competition is lower, travel is recovering, and hotels and airlines want customers to come in, which may not last forever.

Mohit Kabra, Group Chief Financial Officer

Of course, it’s important to view this through the lens of growth. While the business has been operating for 20 years, the domestic business started around 15-16 years ago. Within that timeframe, the most profitable segment, which is air ticketing, is on par with many global OTAs. Other segments, beyond air ticketing, have been around only for 5-7 years, necessitating time to mature. We plan to improve profitability across all segments and get there over time, aiming for continued growth and improved profitability.

Unidentified Analyst, Analyst

All right. Thank you.

Vipul Garg, Vice President, Investor Relations

Thank you, Prashant. The next question is from the line of Vijit Jain.

Vijit Jain, Analyst

Thanks, Vipul. So my first question is any impact you're seeing in your customer acquisition costs from the new Apple privacy rules? Do you have any sense of what impact might come from any actions Google decides to take? Relatedly, do you think this could impact global competitors like Booking or Airbnb if they return to India?

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Hi, Vijit. Maybe I can take that. On the first question, the answer is no. We haven't seen any impact yet and will continue monitoring the situation as it progresses. Since we have a high share of direct traffic on our platform due to strong brand presence, we haven't felt significant impacts. Regarding your second question about Booking.com and Expedia, they have been in India for years. During the pandemic, their focus shifted back to core markets. In recent quarters, they've resumed activities domestically. Our strategy remains focused on continuously enhancing customer experience and improving supply depth in markets like Tier 3 and Tier 4 cities. Investments made during the pandemic will help. Healthy competition is always welcome, and we will continue executing our strategies.

Vijit Jain, Analyst

Thanks, Rajesh. My second question is on the My Affiliate program you discussed. So, is this across all segments—bus, train, air, as well as hotels? Additionally, given that PhonePe is a part of Flipkart, which has Cleartrip, how does that work?

Rajesh Magow, Co-Founder and Group Chief Executive Officer

The first part of your question is that to start with flights and hotels, and we can always add more services as we go. But we do have RedBus independently powering Amazon Pay even before this MakeMyTrip affiliate alliance that we had. Thus, bus was already there. It was already listed on PhonePe too. We don't have rail yet, but we may add it and other ground transport options later. Operationally, PhonePe and Flipkart run separately as independent entities, and we do not have concerns about competing with them. Historically, we have used PhonePe for new user acquisition, and this partnership allows us to exclusively power them from a flights standpoint, and subsequently for hotels.

Vijit Jain, Analyst

Got it. Thanks, Rajesh. I have a last question. You mentioned some of these investments during the pandemic. Your cash used in investing activities was $119 million in 2021, which went to $78 million in 2022. Could you provide a broad overview of what this entails?

Mohit Kabra, Group Chief Financial Officer

Maybe we can take that as a follow-up.

Vipul Garg, Vice President, Investor Relations

Thank you, Vijit. We have now questions from Sachin Dixit. Sachin, you may please ask your question now.

Unidentified Analyst, Analyst

Sure. Hi, Rajesh and Mohit, thanks for the time. I have a quick question on the customer side. This relates to customer behavior and loyalty. Can you provide some color on your MMT Black programs? How are they going? Are customers willingly paying or is it mostly bundled costs with credit cards, etc.?

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Sachin, your voice was breaking, but I heard part of your question about our loyalty program, MMT Black. Our loyalty program is actually doing well. From our learnings over the years, we have effectively cut the cord on the program, and it has been working well. We continue to grow the number of users. One data point I can give you is that our repeat rate on the platform is 20% higher for Black loyal members compared to regular members.

Unidentified Analyst, Analyst

Sure. The next question I had was on customer wallet share. Do you have any context on how much a loyal MakeMyTrip customer spends on your platform?

Rajesh Magow, Co-Founder and Group Chief Executive Officer

It's a very good question. Our goal is to get more wallet share from each customer. From our cross-sell and upsell standpoint, flight bookers tend to also book hotels with us, and vice versa. We have been acquiring a lot of new users on our rail platform, from which we have also started to effectively offer bus as a cross-sell option. We are trying to take a customer-centric view and address every possible travel use case that our customers might have. We haven't reported actual wallet share figures yet, but as we have more data on this in the coming quarters, we should be able to provide more context once cross-sell and upsell data pick up.

Unidentified Analyst, Analyst

Great. Thank you.

Vipul Garg, Vice President, Investor Relations

Thank you, Sachin. If anyone has a question, please raise your hand. Otherwise, we have no other person in the queue. We'll just wait for a few more seconds if anyone has any questions. All right. Thank you very much. We have no more questions, Rajesh, in the queue. So we can end the call with your closing remarks. Thank you.

Rajesh Magow, Co-Founder and Group Chief Executive Officer

Thank you, everyone, for your time on the call today. Stay safe and healthy. Thank you so much.

Vipul Garg, Vice President, Investor Relations

Thank you. You may please disconnect.