Travel industry software provider RateGain is set to hit the markets with its ₹1,336 crore IPO. After a profitable FY19, it suffered losses in the last two fiscals due to pandemic-related sluggishness in the tourism sector. However, the third-party travel technology space is estimated to grow at 18% CAGR till 2025. RateGain, with its long standing client relationship and advanced AI-based products, stands to gain from this trend. The company has also won the ‘Most Innovative Startup’ award at the Economic Times Innovation Awards in 2020.
All about the IPO
Bhanu Chopra, the founder of RateGain, was a frequent traveller. He would go to different websites and do price comparisons. Inspired by his own experience, Chopra started RateGain in 2004 but with a little twist. His company provided hotels with their competitors’ pricing. Cut to 2021, it has evolved into India’s largest Software as a Service (SaaS) company in the travel and hospitality industry.
The company has three business verticals - Data as a Service(DaaS), Distribution and Marketing technology. Across these verticals, it serves 1,462 customers across the world.
Revenue: -2.12%; Net profit: NA (FY19-21 CAGR). The business performance was adversely impacted due to the pandemic.
Good to know
The demand for third party software has risen during the pandemic as companies are reducing in-house IT staff. In fact, the third party travel and hospitality technology space is estimated to grow at a CAGR of 18% to $11.5 by 2025. Another tailwind for the company is that its marketing technology segment is quickly emerging as a strong revenue contributor with high social media adoption by the client hotels.