NEW DELHI: RateGain has acquired Chicago-based, hospitality sector-focused digital marketing services provider BCV for Rs 175-Rs 200 crore, according to people with knowledge of the matter, the second buyout in the United States for the Noida-based travel tech company in less than a year.
The transaction, which closed earlier this month, will allow RateGain to offer clients a comprehensive guest experience cloud platform, through a variety of digital products, designed to increase direct sales, provide improved guest interactions and mitigate negative experiences, a senior company executive told ET.
“RateGain and BCV will replace the traditional waterfall methodology of data collection, analysis and action with a more agile model that would bring revenue management, sales and marketing together, breaking down the traditional silos to generate unprecedented visibility and control,” said Bhanu Chopra, chief executive, RateGain.
Chopra, however, declined to comment on the size of the deal.
RateGain, which had raised $50 million from TA Associates in its sole round of funding in 2015, offers a range of services to travel and hospitality firms, primarily on how to increase their revenue, including providing AI and machine learning-based real time intelligence on when to opt for surge pricing, depending on factors such as weather conditions, possible events and how the competitors are pricing themselves, to managing distribution of their rates to other online portals.
Founded by Chopra in 2004, the company, which works with some of the world’s largest online travel operators, hotel chains, airlines, car rental chains and cruise lines, counts the likes of SoftBank-backed hospitality chain OYO, Nasdaq-listed MakeMyTrip, the Taj Groupof hotels and IndiGo Airlines among its clients in India.
Globally, according to the company, it works with 125,000-plus hotels, spread across 191 countries, powering 30 million bookings in the process.
This is the second buyout by RateGain, which had announced acquisition of US-based hotel distribution service DHISCO for an undisclosed sum in August 2018. ET was the first to report, on March 28, that the 15-year-old company was scouting for multiple acquisitions to expand its footprint.
Chopra also said that RateGain was in the process of evolving into a one-step shop platform to service the broader travel industry.
“We are currently evaluating 10-15 potential acquisition opportunities in the US and Europe, and will continue to accelerate our M&A rollup” said Chopra. “We are looking for companies in the revenue management and digital marketing and distribution solutions segments within the travel and hospitality segment. The acquisitions could range from $25-75 million.”
RateGain, according to its CEO, is in the midst of sewing up one more buyout that should be completed by the end of this financial year.