Travel and hospitality technology services provider Rategain Travel Technologies Ltd has filed draft papers for its initial public offering (IPO) that will see US private equity firm TA Associates make a partial exit.
Rategain offers a suite of inter-connected products that manage the revenue creation value chain for travel and hospitality companies by data analytics and integration with other technology platforms.
Mint first reported in June that Rategain was working on an IPO.
The company plans to raise Rs 400 crore through the IPO which will be deployed towards repayment of a loan availed of by subsidiary RateGain UK from Silicon Valley Bank; payment of deferred consideration for acquisition of DHISCO; strategic investments, acquisitions and inorganic growth; investment in technology innovation, artificial intelligence; purchase of certain capital equipment for data centre.
TA Associates will sell 17.1 million shares in the IPO and other individual shareholders will sell 5.49 million shares. The private equity firm holds 22.8% stake in the company and is selling a significant portion of its stake in the IPO. The promoters of Rategain hold over 50% stake in the company.
Investment banks Kotak Mahindra Capital, IIFL and Nomura are advising Rategain on the IPO.
As of 30 June, the company served over 1,400 customers including eight global Fortune 500 firms. 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 counted 1,186 large and mid-sized hotel chains, 104 travel partners including airlines, car rental companies and large cruise companies and over 144 distribution partners as of June 30, 2021.
Rategain’s revenue fell to Rs 261.5 crore in FY21 due to the impact of covid-19 on the travel industry. It reported a revenue of Rs 398.7 crore in the previous year.
It reported a loss of Rs 27.8 crore in FY21, increasing from a loss of Rs 12.8 crore the previous fiscal. The company had reported a profit of Rs11.5 crore in FY19 on a revenue of Rs 272.7 crore.