New Delhi-based RateGain Travel Technologies seeks to raise close to $15 million from Avataar Venture Partners for its expansion plans.
The company, which runs a homegrown travel and hotel software solutions platform, may issue 21,269 cumulative convertible preference shares (CCPS) at $235.08 per share to Avataar Venture Partners I, aggregating up to $5 million in the first tranche and 42,539 CCPS at the same rate to the same fund amounting up to $10 million in the second tranche, according to regulatory filings.
According to the company, the newly raised funds will help with its expansion plans.
Founded in 2004, RateGain provides software-as-a-service (SaaS)-based hospitality and travel technology solutions, such as revenue management decision support, electronic distribution, brand engagement, channel management, competitive rate intelligence and price optimisation.
The company has offices and operations spread across the United States, Europe and Asia, with as much as 50% of the clients based in the US.
RateGain reported a 32% rise in net revenues of Rs 106.61 crore in the financial year ended March 2019, according to VCCEdge data. Profit after tax stood at Rs 10.36 crore, up 130%.
Like its peers in the travel industry, RateGain has also seen Covid-19 induced slowdown. In April 2020, the company had sent some of its employees on unpaid leave, citing revenue decline and business uncertainty for the next few months.
Avataar Ventures is a venture capital firm founded by former Norwest partner Mohan Kumar and former Freshworks COO Nishant Rao. Its portfolio includes information technology infrastructure management services company Appnomic, digital logistics platform ElasticRun and SaaS firm Zenoti.