AI-Powered SaaS Provider for Hospitality Reports 80% YoY Revenue Growth, Prepares for Acquisitions
RateGain Travel Technologies, an AI-powered Software-as-a-Service (SaaS) provider for the hospitality and travel industry, has announced impressive year-on-year revenue growth of 80% for the quarter ending June. The company, which offers AI-driven solutions to enhance data management, distribution, and marketing technology for businesses in the industry, is now preparing for strategic acquisitions as it continues its upward trajectory.
Founder and Chairman Bhanu Chopra highlighted the impact of data privacy regulations on the industry, noting that India’s forthcoming data protection bill will be a game changer. The bill will bring much-needed protection to Indian consumers who are often targeted by identity thieves due to their lack of awareness about data sharing with third parties. Chopra emphasized that with tech giants like Google and Apple prioritizing data privacy, marketers will face challenges when targeting the Indian population, particularly those aspiring to travel.
In addition to the significant revenue growth, RateGain is looking to acquire one company per year over the next three years while doubling its revenue. Chopra outlined three growth vectors for the company: expanding its current product offerings, capitalizing on previous investments in product development, and pursuing mergers and acquisitions. RateGain has already successfully acquired four companies in recent years and intends to continue this trend, stating confidence in surpassing their fiscal year guidance.
To support its growth plans, RateGain’s board has approved raising funds of up to Rs 600 crore through equity shares issued via a qualified institutional placement. In the quarter ending June, the company achieved revenues of Rs 214.48 crore, with a profit after tax of Rs 25 crore, up from Rs 8.42 crore in the corresponding period of the previous fiscal year.
Chopra attributed the company’s robust growth to steady demand, even in the face of ongoing challenges posed by the pandemic. He explained that people’s desire for new experiences drives the sustained demand for travel despite the lingering effects of the pandemic. RateGain’s offerings have been particularly beneficial in addressing labor shortages in the hospitality industry, especially in Europe and the United States, by digitizing workflows related to revenue management, marketing, distribution, and pricing.
The rise of AI has also played a significant role in RateGain’s success. Chopra emphasized that data is a crucial ingredient for AI models to function effectively, and their data-as-a-service product line has experienced heightened consumption, aligning with enterprises’ increasing reliance on data. The acquisition of Adara has expanded RateGain’s offerings to include end-to-end solutions for brand monitoring, engagement, and maximizing return on advertising investment, which has gained significant traction.
Chopra highlighted that RateGain’s performance outpaces that of most hotel companies, as hotels face challenges in increasing costs associated with manpower while struggling to attract employees post-pandemic. Recognizing the need for better, scalable technology platforms, many hoteliers are investing in RateGain to engage Indian consumers who are heavily reliant on their devices.
With its impressive growth, strategic acquisitions, and focus on providing innovative solutions, RateGain Travel Technologies continues to solidify its position as a leader in AI-powered SaaS solutions for the hospitality and travel industry. The company’s ability to address industry challenges and cater to evolving customer demands positions it for continued success in the future.
