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Rategain Travel Technologies Limited is one of the leading distribution technology companies globally and the largest Software as a Service (“SaaS”) company in the hospitality and travel industry in India. It offer travel and hospitality solutions across a wide spectrum of verticals including hotels, airlines, online travel agents (“OTAs”), meta-search companies, vacation rentals, package providers, car rentals, rail, travel management companies, cruises and ferries. The company provides a suite of interconnected technologies that enable hotel and travel providers gain more guests, retain them through personalized guest experiences, and strive to maximize their profits by leveraging its bigdata capabilities and interaction with other digital platforms.

* Third party travel and hospitality technology is estimated to be a US$ 5.91 billion market in 2021 growing to an estimated U$ 11.47 billion in 2025 at a CAGR of 18%

* Rategain Travel delivers travel and hospitality technology solutions through the SaaS platform through 3 business units; 1. Data as a Service (DaaS), 2. Distribution and 3. Marketing Technology (MarTech).

* The business serves over 1400 customers including 8 Global Fortune 500 Companies. Six Continents Hotels, InterContinental Hotels Group, Kessler Collection, Lemon Tree Hotels, Oyo Hotels, and Homes Pvt Ltd are some of the marquee customers served by the company.

* As a SaaS company, its cloud-based products offer customer improved usability and it can effectively scale its operations. The scale of company’s operations and it strength in analytics have helped it to grow in operations and monetize its offerings.

Outlook & Valuation:

The company's financials have been uneven during the last three years, with revenue rising to Rs.457.61 crore in FY20 and falling to Rs.264 crore in FY21. The company has suffered a loss in recent years on the back of COVID where the company reported a loss of Rs. (20.1) cr in FY20 which even increased to Rs. (28.57) cr in FY21. RateGain is the largest SaaS company in the travel and hospitality industry. The company suffered losses in the last two years. However, as things will normalize post-Covid, we see bright prospects for the company. The company has an asset-light business model with a strong management team. The company is valued at a P/BV multiple of 16x on its NAV of INR 26 for FY21. Being a first-mover in the industry we assign a "SUBSCRIBE" rating for moderate listing gain and long term.

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