Bootstrapped technology firm RateGain has raised Rs 200-300 crore from US-based private equity firmTA Associates in its first round of funding, according to a person familiar with the deal that values the Noida-based company at over Rs 1,000 crore and catapults it to the league of India’s most valuable enterprise software firms
RateGain founder and chief executive Bhanu Chopra confirmed the deal but declined to reveal the financial terms of the transaction. “This funding is a big stamp of approval and recognition for the good work we have done,” said Chopra, 38. “We strongly believe the return on our effort will exponentially rise as a result of this investment.” The decade-old company, which sells software for the hospitality and travel industries in 120 countries, is aiming for a share sale on Nasdaq that could value it at about Rs 6,000 crore.
It will use the funds to expand operations overseas, develop products and acquire firms that have built solutions for the travel and hospitality industries. TA Associates said in a statement that in addition to a compelling software-as-a service model, RateGain has strong financial momentum and a high-quality and growing customer base across the hospitality and travel segments.