The offer will be open from December 7 to 9
The offer includes a new issue of shares with a value of 375 Cr INR and an OFS of a maximum of 2 26 05 530 shares
Founded in 2004 by Chopra, RateGain offers a SaaS product for travel and hospitality businesses to help them streamline their operations and sales.
Travel tech startup RateGain has set the price range for its Initial Public Offering (IPO) at INR 405 – INR 425 per share.
The offer, which includes a new issue of shares valued at INR 375 Cr, is expected to open on December 7 and will close on December 9. Rategain has lowered its new issue size compared to the initially proposed INR 400 Cr. The offer also includes an offer to sell (OFS) of a maximum of 2 26 05 530 shares and shares with a value of 5 Cr INR will be reserved for eligible employees.
In a statement, the Noida-based startup said offers can be made for a minimum of 35 stocks and in multiples of 35 stocks thereafter.
RateGain offer for sale
- In the OFS, the private equity firm TA Associates will sell up to 1,7114,490 shares through its partner Wagner.
- RateGain and CMD founder Bhanu Chopra will discharge 40 43,950 shares.
- Founder family members Megha Chopra and Usha Chopra have offered to sell up to 12.94,760 and 1.52,330 shares, respectively.
The promoters hold a majority stake (68.35%) in the startup. Bhanu Chopra owns 50.34%, while his family members Meghna Chopra and Usha Chopra own 16.12% and 1.90% respectively.
Wagner, meanwhile, owns 16.13% of the company’s capital.
Use of net proceeds
In accordance with the RHP, RateGain will use INR 85.26 Cr to repay a loan taken out by RateGain UK from Silicon Valley Bank. In addition, it will use INR 25.2 Cr of the proceeds as deferred consideration for the acquisition of DHISCO from 2018.
The company has offered to allocate 40.77 Cr INR to purchase equipment for its data center.
It will also seek to invest INR 80 Cr for strategic investments, acquisitions and inorganic growth and INR 50 Cr for technological innovation, artificial intelligence and other organic growth initiatives.
RateGain Chairman and CEO Bhanu Chopra said that after the listing announcement, the company will continue to invest in new products and expand its investments to cross-sell and up-sell our range of products from our large customer base of 1,400 global customers.
He also said the company “will drive more acquisitions and strategic investments to fuel its martech (marketing technology) offerings so that it can give more control to customers to identify more revenue opportunities with travelers. while reducing acquisition costs “.
Founded in 2004 by Chopra, RateGain offers a SaaS product aimed at travel and hospitality businesses to help them streamline operations and sales. It allows these businesses to determine the right price for their products based on demand, current market rates, and more to help hotels and reservation agents maximize revenue.
Regarding the company’s geographic revenue sources, Chopra said most of RateGain’s business is driven by the international market – with almost 60% coming from the United States and 15-20% coming from Europe and the rest of Asia.
“Nationally, we work with almost all of the major brands to date, however, the volume of overseas business is much higher and therefore India now contributes less than 2% of our revenue,” he added.