The traveltech startup’s profit shot up from INR 9 Lakh in Q3 FY22 on the back of a steady growth in the global travel demand, which got further boost during the holiday season
RateGain’s operating revenue also increased 39.7% to INR 138.3 Cr in Q3 FY23 from INR 99 Cr in the year-ago quarter
The company said that its best-reported quarter so far was driven by new contract wins, recorded at INR 49.3 Cr
Traveltech SaaS startup RateGain on Friday (February 10) reported a 147X year-on-year (YoY) jump in its profit after tax (PAT) to INR 13.3 Cr in the December quarter of the financial year 2022-23 (FY23), helped by steady growth in the global travel demand, which got further boost during the holiday season.
RateGain had reported a PAT of INR 9 Lakh in the corresponding quarter last year, when the travel industry was still in the recovery phase globally following the Covid-19 pandemic and lockdowns.
Backed by increasing demand, RateGain’s operating revenue also increased 39.7% to INR 138.3 Cr in Q3 FY23 from INR 99 Cr in the corresponding quarter last year.
Sequentially, RateGain’s PAT and operating revenue grew 2.1% and 11% from INR 12.9 Cr and INR 124.6 Cr, respectively, in Q2 FY23.
Founded in 2004, RateGain is a global provider of SaaS solutions for the travel and hospitality industry and claims to work with over 2,600 customers and more than 700 partners in over 100 countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.
RateGain’s recurring revenue for the quarter ending December 2022 stood at 99%, while its annual recurring revenue grew to INR 553.1 Cr.
“We continue to drive consistent and resilient performance on the back of expansion of existing relationships with enterprise customers. Our businesses continue to witness good traction and deliver strong growth, contributing to improving margins,” said Bhanu Chopra, founder and chairman of RateGain.
The company said that its best-reported quarter so far was driven by new contract wins, recorded at INR 49.3 Cr, which was better than Q3 FY22 contract wins, which was its second-best quarter so far.
RateGain reported healthy operating margins at 16.6% in Q3 FY23 against 9.4% in the corresponding quarter last year.
The traveltech platform’s loan-to-value (LTV) to customer acquisition cost (CAC) for nine months of FY23 stood at 22.8X
Speaking about its latest acquisition of data exchange platform Adara for $16.1 Mn (INR 134 Cr), Chopra said that it would help the company unlock further opportunities to grab mindshare and deepen relations with its customers.
“…we look to re-capture and re-activate the client base to drive growth,” he added.
RateGain’s total expenses grew 24.8% year-on-year (YoY) to INR 124.1 Cr during the quarter under review, with employee benefit expenses accounting 48.7% of it. The company spent INR 60.5 Cr towards employee benefits in Q3 FY23 as against INR 50.8 Cr in the corresponding quarter last year.
Other expenses grew 40.9% YoY to INR 54.9 Cr in Q3 FY23.
“With the opening of China, and a strong increase in outbound international travel expected from the United States – the travel and hospitality industry is expected to see healthy growth, but at the same time will need to modernise their existing technology systems to deliver at scale without any interruptions, and this is expected to benefit technology players like RateGain,” the startup said in a statement.
Shares of RateGain ended Friday’s session 3.5% higher at INR 374.55 on the BSE.
