Rategain – Q2FY24
Source – https://www.youtube.com/live/GCvPd-PA2gQ?feature=shared
Updates from the above interview
- Was looking for expansion in the Middle east, but those plans have been paused due to the ongoing conflict.
- No impact of interest rates and the Ukraine and Russia conflicts.
- 35% organic growth.
- Plan is to reach 1000crs revenue by FY24 and then double this revenue in 3 years (Approx 200cr gross profit even assuming 20% GM)
- The M&A plans are for all three verticals, Distribution, DaaS and MarTech. The ticket size is around $20m dollars, some could be more.
- Trying to fill in the whitespaces to form a fully integrated platform company with a lot of cross sell opportunities.
- Have a programmatic M&A plan and they have a database of 350 companies and at any point of time they are talking to a dozen of them and there are a couple of companies which are in the advanced stages of negotiations.
- Looking for companies that can give adjacent capabilities.
- Have around 435crs of cash in the balance sheet.
- Very judicious about what they pay and most of the acquisitions are around 1-2x the annual revenue.
- Geographically their revenue comes 60% from NA, 25% from EMEA, and the rest from the rest of the world.
- Penetration was small in middle east and latin america and now looking to expand there.
- The Middle East expanded dramatically but that has been put to pause.
- Revenue split by the verticals – 45%-Hotels,20%-destination management companies (Visit CA, Incredible India), 15% from OTAs, 5% – airlines and 5% from car rental companies.
- Deal wins 3x of last year, no slowdown seen.
Disc : Invested and increased holdings after the Q2 results.
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