The traveltech SaaS startup’s profit rose 21% quarter-on-quarter from INR 24.9 Cr as it saw growth across verticals in Q2
RateGain reported a 88.4% year-on-year jump in operating revenue to INR 234.7 Cr in Q2 FY24
The startup attributed the strong performance to expansion of relationships with marquee enterprise customer base, addition of new clients, and monetisation of key contracts wins
Traveltech SaaS startup RateGain’s consolidated profit after tax more than doubled to INR 30.04 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24) from INR 12.96 Cr in the same period last year due to strong travel demand, which led to growth across verticals.
On a quarter-on-quarter (QoQ) basis, the company’s profit after tax grew 21% from INR 24.9 Cr.
RateGain reported a 88.4% year-on-year (YoY) jump in operating revenue to INR 234.7 Cr in Q2 FY24, which also grew over 17% from INR 124.61 Cr in the preceding quarter.
EBITDA margin expanded to 19.8% from 14.1% in the corresponding quarter of last year, while EBITDA surged 163.9% YoY to INR 46.4 Cr.
“The company continues to drive growth and all-round operational performance through
expansion of relationships with its marquee enterprise global customer base across the travel &
hospitality space, addition of new clients and continued monetisation of key contracts wins in the past few quarters,” RateGain said in a statement.
With travel demand beyond 2019 levels, the traveltech industry is now investing into adopting new technologies including AI to improve customer experience, drive cost efficiencies and optimise revenue, the startup added.
“With the travel industry making AI a priority to create predictable revenue streams and drive cost efficiencies, RateGain is emerging as a natural choice for industry leaders to help them get access to accurate pricing and travel intent data, powered by a dependable digital infrastructure to improve conversions,” Bhanu Chopra, founder and chairman of RateGain Travel Technologies, said.
In terms of expenses, total expenditure rose 53% YoY and 6% QoQ to INR 199.1 Cr during the quarter under review.
The most substantial component of these expenses remained employee benefits. RateGain spent INR 94.3 Cr on employee benefits in Q2 FY24 as against INR 58 Cr in the year-ago quarter.
RateGain’s employee count rose 18.8% to 746 at the end of Q2 FY24.
Founded in 2004, RateGain is a global provider of SaaS solutions for travel and hospitality. It works with 3,000+ customers and 700+ partners in 100+ countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.
Following the release of Q2 financials, shares of the company ended Friday’s session 3.8% higher at INR 624.80 on the BSE.