TA Associates Announces Investment in RateGain

TA Associates, a leading global growth private equity firm, today announced it has completed a minority investment in RateGain, a leading provider of SaaS-based hospitality and travel technology solutions. Financial terms of the transaction were not disclosed.

Founded in 2004, RateGain provides revenue management and distribution channel management software and real-time pricing data and analytics to help businesses streamline operations and sales. In the travel segment, the company serves suppliers and intermediaries, including airlines, cruise lines, car rental providers, online travel agents, tour operators and wholesalers, helping them to optimize pricing and monitor competitive offerings. In the hospitality segment, RateGain primarily serves the hotel industry, providing solutions to aid in optimizing pricing, ensuring rate parity, managing rates and inventory across booking channels, and tracking and managing online reputations. The company serves more than 5,500 clients around the world, including approximately 3,000 individual hotel properties. RateGain is headquartered in Noida, India, with additional offices in Spain, the United Arab Emirates, the United Kingdom and the United States.

“We have actively tracked RateGain for many years and are pleased to have advised on the investment in this highly attractive business,” said NaveenWadhera, Co-Head of Asia at TA Associates Asia Pacific Ltd., who will join RateGain’s Board of Directors. “In addition to a compelling SaaS model, the company has strong financial momentum and a high-quality and growing customer base across both the hospitality and travel segments. We will work with RateGain management to explore new business opportunities among current and prospective clients, and further geographic expansion, particularly in North America and Asia Pacific.”

“We are very pleased to welcome TA Associates as our first institutional investor,” said Bhanu Chopra, Founder and CEO, RateGain. “We believe a private equity partnership, particularly with an experienced firm like TA, will prove an effective approach to accelerating growth at this stage of our development. We will work closely with TA in expanding our global reach, investing to be closer to our customers and driving new product development. In addition, we will focus considerably on consolidating various point solutions in the travel and hospitality industries through acquisitions, and on providing one unified revenue management and distribution solution for a seamless experience for our customers.”

“RateGain’s highly innovative solutions are widely appreciated by clients who need real-time access to inventory and pricing data, and greater automation in revenue management,” said DhirajPoddar, Co-Head of India at TA Associates Advisory Pvt. Ltd. “The hotel technology segment is also highly fragmented, with a recognized need for further consolidation. Given these industry dynamics, we see continued opportunities for RateGain to further expand its leadership position.”

Goodwin Procter and Nishith Desai provided legal counsel services to TA Associates. Platinum Partners served as legal counsel and Signal Hill provided advisory services to RateGain.