The IPO includes an offer for sale of up to 22,605,530 shares.
The NCR-based startup reported a net loss of INR 28.57 Cr for FY21, 42% higher YoY
Founded in 2004, it offers a SaaS product targeted at travel and hospitality companies to help them streamline operations and sales
The initial public offering (IPO) of travel tech startup RateGain will open on December 7 and close on December 9, 2021.
The travel tech startup has lowered its fresh issue size by INR 25 Cr to INR 375 Cr for its proposed initial public offering, according to the company’s red herring prospectus (RHP). Its initial offer included a fresh issue of INR 400 Cr.
The Noida-based travel and hospitality software-as-a-service (SaaS) startup got the approval for its IPO from SEBI around a week back. It had filed its draft red herring prospectus (DRHP) in August 2021.
Apart from the fresh issue of shares, its offer includes an offer for sale (OFS) of up to 2,26,05,530 shares.
Offer For Sale
- In the OFS, private equity firm TA Associates will offload up to 1,71,14,490 shares for sale through its associate Wagner.
- RateGain founder and CEO Bhanu Chopra will be offloading 40,43,950 shares.
- The founder’s family members Megha Chopra and Usha Chopra have offered to sell up to 12,94,760 and up to 1,52,330 equity shares.
Promoters hold a majority stake in the startup, at around 68.35%. Bhanu Chopra holds 50.34%, while his family members Meghna Chopra and Usha Chopra have ownership of 16.12% and 1.90%, respectively.
Wagner, on the other hand, holds 16.13% stake in the company.
Utilisation Of the Net Proceeds
With the reduction in the fresh issue size, the startup has also revised the objects of the offer.
As per the RHP, RateGain will now use INR 85.26 Cr to repay a loan taken by RateGain UK from Silicon Valley Bank. In the DRHP, this expense was pegged at INR INR 86.4 Cr.
Further, the company will use INR 25.2 Cr of the proceeds in deferred consideration for the DHISCO acquisition from 2018. This consideration was earlier at INR 26.2 Cr.
It will also look to invest INR 80 Cr towards strategic investments, acquisitions and inorganic growth and INR 50 Cr for technology innovation, artificial intelligence and other organic growth initiatives,
Earlier, the company had proposed to allocate INR 43.3. Cr for purchase of certain capital equipment for its data centre and this proposed expense has now been brought down to INR 40.77 Cr.
It will also look to invest INR 80 Cr towards strategic investments, acquisitions and inorganic growth and INR 50 Cr for technology innovation, artificial intelligence and other organic growth initiatives. The estimates for these two proposed utilisations of the net proceeds have however been kept unchanged.
Financials For FY21
For the last financial year (FY21), the NCR-based startup reported a net loss of INR 28.57 Cr, 42% higher than INR 20.10 Cr of net loss registered in FY20.
Its revenue from operations fell 37% to INR 250.79 Cr in FY21, compared to INR 398.71 Cr reported in FY20.
Founded in 2004 by Bhanu Chopra, RateGain offers a SaaS product targeted at travel and hospitality companies to help them streamline operations and sales.
The startup enables these businesses to determine the right pricing for their products based on the demand, the current market rates and more to help hotels and booking agents maximise revenue.
The company’s pricing decisions are based on the prices set by competitors or other hotels in the vicinity. It also provides hotels information on what people are saying about their property or concept online.
As the offer opens on December 7, RateGain will join a slew of new-age companies to go public.
Fintech giant Paytm was the latest tech-backed company to go public, although it witnessed a weak listing.
Prior to that Nykaa made a stellar market debut and Fino Payments Bank also listed with a discount of over 5%. On November 15, Policybazaar listed with a premium of 17%.
New-age companies waiting to get SEBI’s green signal for their IPOs include OYO, Delhivery, PharmEasy and Droom.
C.E. Info Systems, the parent company of digital mapping startup MapmyIndia has also received the regulator’s approval to go public.