By RateGain Travel Technologies, a leading Software-as-a-Service (SaaS) provider gearing up for an initial public offering (IPO), has recently made a significant acquisition. This move underscores RateGain’s commitment to enhancing its software solutions for hoteliers and expanding its customer base.
About Myhotelshop Acquisition
Myhotelshop, a Germany-based startup founded in 2012 by Ullrich Kastner, specializes in offering software solutions to hotels for direct sales and distribution channels. Their services include reporting, bid management, campaign intelligence platforms, and other travel products that empower online travel agencies (OTAs) and agency clients to connect with a wider audience.
Strengthening Offerings and Market Reach
By acquiring Myhotelshop, RateGain aims to broaden its spectrum of offerings and strengthen its position in the market. This strategic move aligns with the industry’s increasing digitization post-COVID-19, where becoming digital-first is imperative for hotels. RateGain intends to simplify the acquisition strategy for hotels, enabling them to tap into new revenue streams effectively.
Insights from RateGain’s Founder
Bhanu Chopra, the founder of RateGain, emphasized the significance of this merger in addressing industry challenges amid rising digitization. He highlighted the goal of simplifying hotel management’s digital transition, making it more efficient and revenue-driven.
RateGain’s IPO Plans
Established in 2004, RateGain offers comprehensive travel and hospitality software solutions. The company recently filed its draft red herring prospectus (DRHP) for an IPO, aiming to raise ₹400 crore through a fresh issue and sell 2.26 crore equity shares held by investor Wagner and company promoters.
Utilization of IPO Proceeds
RateGain intends to utilize the funds raised from the IPO to repay debts, fuel strategic investments, and facilitate inorganic growth through acquisitions. This strategic financial move reflects RateGain’s commitment to expanding its market presence and enhancing its technological capabilities.
The acquisition of Myhotelshop marks a significant milestone in RateGain’s growth journey, positioning the company to offer enhanced software solutions and cater to the evolving needs of hoteliers in an increasingly digital landscape.
