Mumbai: IPO-bound RateGain Travel Technologies Ltd, a provider of SaaS hospitality and travel, has entered into a definitive agreement to acquire myhotelshop, a German company that helps hotels boost their business in the post-covid.
The financial details of the transaction were not disclosed. Established in 2012, the Leipzig-headquartered myhotelshop offers solutions aimed at increasing direct sales and developing a profitable distribution channel to hotels.
"As COVID-19 accelerates the digitization of customer interactions, nine out of 10 travelers (d) travel online, according to travel research firm Phocuswright. Research also shows that most travelers do not shop and book from the same source, with most buyers looking for travel agents. Online and hotel website reservations. Amid multiple channels, including brokers, metasearch engines, and online travel agents, hotels are striving to create the optimal distribution strategy that helps them increase bookings and lower purchasing costs. Increases the need for hotels to move, the company said in a statement Disparate systems and having a single vendor can help them control better guest acquisition and reduce dependency on a single channel.
myhotelshop offers a reporting, offer management and campaign information platform for metasearch publishers and other travel products that enables hotel providers, online travel agents and agency clients to reach more clients with higher returns.
The merger will help address a major challenge facing the industry in a post-Covid world of increasing digitization. Bhanu Chopra, founder of RateGain said:
RateGain filed for an initial public offering (IPO) in August. The company plans to raise 400 crore through the IPO.
Additionally, TA Associates, an existing investor in the company's private equity, will sell 17.1 million shares in the offering, while other individual shareholders will sell 5.49 million shares.
TA Associates currently owns a 22.8% stake in the company and is selling a significant portion of its shares in an IPO. The promoters of the company own more than 50% of its shares.
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