RateGain Earns INR 124.61 Cr In Revenue In Q2 FY23; Profit Quadruples To INR 19.57 Cr

SUMMARY

In H1 FY23, the startup had operating revenue of INR 243.91 Cr, a 52.7% YoY rise

RateGain claims that the revenue has grown on the back of marquee relationships, operating leverage and new client additions

The loan-to-value (LTV) to customer acquisition cost (CAC) for the first half of the financial year was only 12.2X

NSE-listed travel tech giant RateGain Technologies has reported a consolidated profit after tax (PAT) of INR 19.57 Cr in Q2 FY23 as against a PAT of INR 3.69 Cr in Q2 FY22 – a 430% year-on-year (YoY) rise.

The Delhi NCR-based startup posted an operational revenue of INR 124.61 Cr in Q2 FY23, a 47.0% YoY rise from INR 84.76 Cr in the corresponding quarter of the previous year.

RateGain claims that the revenue has grown on the back of marquee relationships, operating leverage and new client additions. Reviving demand within the travel ecosystem, revenge travel have also contributed to the healthy growth numbers.

RateGain’s recurring revenues for the quarter stood at 99% and the annual recurring revenue (ARR) continues to grow at a steady pace to INR 487.8 Cr. In Q2 FY23 RateGain reported employee expenses worth INR 57.97 Cr, a 26% YoY rise from INR 46.02 Cr in Q2 FY22.

The loan-to-value (LTV) to customer acquisition cost (CAC) for the first half of the financial year was only 12.2X.

Alongside its Q2 FY23 results, the startup also posted its financial results for the first half of the financial year ending March 2023.

In its H1 FY23 period, the startup had operating revenue of INR 243.91 Cr, a 52.7% YoY rise from INR 159.7 Cr in H1 FY22. The traveltech startup’s profit after tax also soared 3.45X to INR 34.43 Cr against INR 7.74 Cr from the corresponding half of the previous year.

Founded in 2004, RateGain claims to be operating in a total addressable market of $1.4 Tn, providing a wide range of travel and hospitality solutions. RateGain offers services across hotels, airlines, online travel agents, metasearch companies, vacation rentals and package providers, car rentals, rail and travel management, cruises, ferries and more.

It claims to have a gross margin of 75% (revenue minus the cost of goods sold) with a subscription revenue model (charging its partner brands). It has more than 2,400 hospitality partners across 100+ countries and RateGain helps them in generating revenue via its martech SaaS for acquisition, retention and wallet share expansion.

Following the announcement of its Q2 FY23 and H1 FY23 financial results announcement, RateGain’s share price soared by nearly 7% from its previous close, reaching the day’s highest of INR 303.50.