SaaS firm RateGain’s IPO to open on 7 December

The IPO consists of a fresh issue of shares worth ₹375 crore and an offer for sale of up to 22.61 million shares by its existing shareholders and promoters.

The OFS comprises up to 17.11 million shares by Wagnar Ltd, up to 4.04 million shares by Bhanu Chopra, up to 1.29 million shares by Megha Chopra and up to 0.15 million shares by Usha Chopra.

Investment banks Kotak Mahindra Capital, IIFL and Nomura are advising RateGain on the IPO.

RateGain is among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India.

As of 30 June, the company served over 1,400 customers including eight global Fortune 500 companies. Its customers include Six Continents Hotels, Inc., an InterContinental Hotels Group company; Kessler Collection, a luxury hotel chain; Lemon Tree Hotels Ltd and Oyo Hotels and Homes Pvt Ltd. 

It also counts 1,186 large and mid-size hotel chains, 104 travel partners including airlines, car rental companies and large cruise companies and over 144 distribution partners including OTAs such as GroupOn and distribution companies such as Sabre GLBL Inc., in over 110 countries as its customers, as of June 30, 2021.

RateGain’s revenue fell to ₹250.7 crore in FY21 due to the impact of covid-19 on the travel industry. It reported a revenue of ₹398.7 crore in the year before that. It reported a loss of ₹27.8 crore in FY21, against a loss of ₹12.8 crore in the previous fiscal. The company had reported a profit of ₹11.5 crore in FY19 on a revenue of Rs261.5 crore.