Writing my first thread here on ValuePickr as i was a bit surprised that no-one has written any thread on RateGain.
The company was listed in December 2021. Issue Price 425/ Current Price 285.
Business : It provides subscription based services to hotels, Online Travel Agents (OTA) like Booking MMT Cleartrip etc., car rental companies etc.
What kind of services does it offer?
It has 3 main verticals :
- Distribution : This is like a bridge between the Hotels and the OTA. Where Rategain software is used to do real time updation of bookings done on OTA on to the database of the hotel. It is also used to update the content of the hotel automatically on the OTA like photos, rates etc. The press release of 16-nov-22 mentions that BOOKING.COM has started integration of its “Content AI” software through which photos etc can be seamlessly updated and tagged and modified by the hotels onto their website.
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Martech : They do digital marketing, social media marketing of various hotels in this business segment. So that the marketing spends of the hotel is better spent on the targeted audience. They have launched a product called “Engage AI” which is basically like a WhatsApp bot which will act as a virtual concierge on behalf of the hotel you have booked and you can do a lot of stuff through this bot like Online checkin/Chekout, spa, restaurant reservations etc, real time enquiry resolution.
It will also upsell services of the hotel or hotel associates by way of recommendations. -
DAAS : Data as a Service. So, basically the data they are collecting through their business is being analyzed by them and then sold to the hotels, airlines, car companies etc for predicting the future demand and recommending them the prices to be set for their services. A lot of major airlines use their services. Recently Akasa air even before their full launch has started using their product in this category for their dynamic pricing.
In the Q2 (FY23) the company’s revenue has grown 47% and PAT for H123 is 21 Crore. Which includes amortization of its earlier acquisition of Rs. 13 crores. So, if we remove the Amortization, yearly run rate is about 68 crores of PAT. But, generally the H2 is much better for the company then H1.
Cash on the books is 435 crores. Current market cap is 3000 crores.
At the time of IPO, the company was servicing 1462 customers, in 1 year it is now providing services to 2557, though not all the customers use all the services. They are confident of maintaining 15% EBIDTA and achieving 40% growth.
Can this be 1 tech company which can shine in between all the doom and gloom there is right now for the New-age business.
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