Tabhi Acquires Mondee Out of Chapter 11, Enhances Liquidity
Deal News | Apr 04, 2025 | Globenewswire
Mondee Holdings, Inc. has been acquired by Tabhi, marking its exit from Chapter 11 restructuring. The acquisition by Tabhi involved a substantial equity investment, leading to a notable reduction in debt and other financial obligations. The ownership of Tabhi is comprised of affiliates from TCW Asset Management Company LLC, Morgan Stanley Investment Management, and Mondee's Co-Founder and Chairman, Prasad Gundumogula, who now holds a majority equity stake and serves as CEO. TCW is also the Administrative Agent for a new credit facility involving Morgan Stanley Investment Management and Wingspire Capital LLC. Mondee, a travel marketplace and AI technology company, operates globally and provides travel solutions to travel experts and organizations. As it rebrands under Tabhi, the company aims to leverage AI innovations to transform the travel industry.
Sectors
- Travel Technology
- Financial Services
Geography
- United States – Mondee is headquartered in Austin, Texas and has a significant operating base in the U.S.
- Global – Mondee's operations span multiple countries with offices across four continents, indicating a global reach.
Industry
- Travel Technology – Mondee is a travel marketplace that uses artificial intelligence technology to innovate the travel industry.
- Financial Services – The acquisition involves financial restructuring and new capital infusion from prominent financial entities, strengthening Mondee's financial position.
Financials
- Substantially reduced debt – The transaction involved reducing Mondee's debt to half its previous levels.
- Additional equity investment – Significant equity invested in Mondee by Tabhi and affiliates, enhancing liquidity.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tabhi | Bidding Company | Company | Tabhi acquired Mondee Holdings and enhanced its financial stability. |
| Mondee Holdings, Inc. | Target Company | Company | Former independent travel technology company acquired by Tabhi, exiting Chapter 11 restructuring. |
| Prasad Gundumogula | CEO and Majority Shareholder | Person | Co-Founder of Mondee and now the CEO of the newly constituted Tabhi, holding a majority equity stake. |
| TCW Asset Management Company LLC | Financial Investor/Administrative Agent | Company | One of the financial entities managing a new credit facility for the acquisition. |
| Morgan Stanley Investment Management (MSIM) | Financial Investor | Company | Involved in the credit facility arrangement for the deal. |
| Wingspire Capital LLC | Financial Investor | Company | Participant in the credit facility secured by Tabhi for Mondee's acquisition. |