Rategain Travel Tech revenues grow 55% yoy in Q3FY22

5 Jan 2022 , 07:45 AM

The overall demand for Rategain Travel Technologies Limited products improved in 9MFY22 driven by a strong travel demand in our key market of United States even though most of Europe and Asia continued to be under restrictions following localized lockdowns.

• The company’s revenues grew by around 40% yoy during 9MFY22 and grew by around 55% on yoy basis in Q3FY22.
• Q3FY22 is the highest quarter in terms of new contract wins for RateGain, during which the company witnessed a growth of 215% over Q3FY21. 9MFY22 saw a growth of around 131% over the corresponding previous year.
• Gross Retention Rate remained around 92% during this period.
• Net Retention Rate remained around 121% during this period
• Customer Counts increased from 1,462 on Aug 31, 2021, to around 2,264 by Dec 31, 2021.
• US remained largest geography with around 65% revenue contribution.
• LTV to CAC improved to 11.34 from 8.9 last year, on the back of high volume of new bookings.
• Recurring Revenue remained at around 97%

During December 2021, The Company did an IPO. The total issue size was Rs1,335.73cr of which Rs375cr was fresh issue. In line with the objects of the issue, The Company is in the process of repaying debts availed by RateGain UK from Silicon Valley Bank (Rs85.26cr). This will make the company debt free and will result in lower financing costs and a stronger balance sheet position for the company. Including the IPO proceeds, cash and equivalents as on December 31, stood at around Rs500cr.

In September 2021, the company completed its acquisition of the German company, MyHotelshop Gmbh, which provides a platform to help hotels improve direct guest acquisition. Myhotelshop will help hotels with reporting, bid management and campaign intelligence for metasearch publishers and other travel products that enables hotel suppliers to reach more customers without increasing costs and will enhance our Martech Product Suites.

The company’s new RG Labs initiative launched three new products during this time — Demand.AI, Rev.AI, and Content.AI. All of these products leverage artificial intelligence to help the travel and hospitality industry generate more revenue.