Activist short-seller Morpheus Research has accused online travel aggregator MakeMyTrip of anti-competitive practices and profit inflation, sending ripples through the industry. The allegations, outlined in a detailed report, center on MakeMyTrip’s dealings with hotels and its accounting practices.
Morpheus claims MakeMyTrip uses ‘accounting tricks’ to inflate profits and fails to protect customers from unsafe hotels. The firm, which holds short positions in MakeMyTrip, says its research included conversations with over 100 industry insiders, including former employees and hotel chain managers.
The report alleges that MakeMyTrip continues to impose price parity on hotel partners, despite regulatory scrutiny. Morpheus claims that hotels are quietly removed from search results if they list cheaper prices elsewhere or refuse exclusive deals with the platform.
Morpheus also takes aim at MakeMyTrip’s accounting. The report claims the company hasn’t set aside sufficient funds to cover a potential negative outcome in its petition against a 2022 fine from the Competition Commission of India (CCI). It also questions the valuation of a receivable from defunct Go First, and the use of ‘adjusted’ metrics that inflate results compared to IFRS figures.
MakeMyTrip CEO Rajesh Magow stated in July 2025 that the company only “theoretically” faces competition. Morpheus disputes this, citing former MakeMyTrip executives who say the company was “blindsided” by Booking.com and Agoda, which have been aggressively cutting prices. MakeMyTrip’s share of bookings at Marriott hotels in India has reportedly fallen, while Booking.com’s has increased.
The report also raises concerns about unsafe hotels listed on MakeMyTrip. Morpheus says it found hundreds of properties with reports of extortion, safety concerns, or other serious issues. Despite these reports, many of these hotels remain listed on the platform. Additionally, Morpheus alleges the platform still uses dark patterns despite publicly claiming they don’t.
MakeMyTrip declined to comment on the report. The allegations come as MakeMyTrip evaluates a potential listing on Indian exchanges.
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