Travel & hospitality-focused SaaS firm RateGain raises $50M from TA Associates
Noida-based RateGain IT Solutions Pvt. Ltd., which runs a SaaS-based software solutions deck for travel and hospitality industry, has raised around $50 million (Rs 310 crore) in its first round of funding from private equity firm TA Associates.
The fund will be used for company's expansion in North America and Asia Pacific markets. A part of it will also go into launching new products catering to the hospitality and travel industry.
Naveen Wadhera, co-head, Asia at TA Associates will join the board of the company.
Without confirming the size of the deal, Bhanu Chopra, founder, RateGain said, "We will work closely with TA in expanding our global reach, investing to be closer to our customers and driving new product development. In addition, we will focus considerably on consolidating various point solutions in the travel and hospitality industries through acquisitions, and on providing a unified revenue management and distribution solution for a seamless experience for our customers."
"The fund will be used for expansion of our sales and support infrastructure globally, as well as for creating and augmenting our existing presence in Europe and the US," he added.
Founded in 2004 by Chopra, RateGain provides revenue management and distribution channel management software, and real-time pricing data and analytics, to help businesses streamline operations and sales. Chopra holds a Bachelor of Science degree from Indiana University, the US.
The company serves more than 5,500 clients around the world, including approximately 3,000 individual hotel properties.
RateGain is headquartered in Noida, India, with additional offices in Spain, the UAE, the UK and the US. RateGain helps travel and hospitality companies manage their revenue better, besides brand engagement. It also helps clients streamline their operations and sales.
For Boston-headquartered private equity firm TA Associates, this is the first new deal in India since mid-2013 when it backed analytics service provider Fractal Analytics with $25 million (Rs 150 crore).
"We have actively tracked RateGain for many years and are pleased to have advised on the investment in this highly attractive business," said Wadhera.
"In addition to a compelling SaaS model, the company has strong financial momentum and a high-quality and growing customer base across both the hospitality and travel segments. We will work with RateGain to explore new business opportunities and further geographic expansion, particularly in North America and Asia Pacific," he added.
The PE firm has previously invested in handset maker Micromax, diagnostics chain Dr Lal PathLabs, Tega Industries.
(Edited by Joby Puthuparampil Johnson)