We are discussing Travel Tech Startup RateGain Expands ESOP by Allocating Shares Worth Rs 4.5 Crore:
RateGain is a Delhi NCR-based travel tech startup. The startup expands its employee stock option plan by allocating 59,904 shares worth Rs 4.5 crore to the employees. This software company offers business intelligence hotel software for hotel commercial teams to solve guest engagements, digital marketing, and more. The stock options under the ESOP scheme offered by the startup have a face price set at Rs 1 per share.
RateGain previously announced in its filing that it allotted 23,880 equity shares under the 2015 ESOP scheme in May after its last major stock option was approved. Meanwhile, the 36,024 equity shares were allotted under the stock appreciation rights scheme. After this allotment, the paid-up share capital of the firm will increase to Rs 11.79 crore. The newly allotted ESOPs have a value of around Rs 4.49 crore.
RateGain is a travel tech startup offering global SaaS solutions for travel and hospitality, accelerating revenue growth through retention, acquisition, and wallet share expansion. The startup serves more than 3200 customers and operates in 100 countries. The announcement came just after Megha and Usha Chopra sold 3 percent of total shares in March.
The company earns the majority of its revenue through subscription-based services, including car rental companies and Online Travel agents such as Make My Trip and Booking.com. RateGain is the largest processor of price intelligence, hotel bookings, and customer travel globally. The startup offers hospitality and travel services in sectors including airlines, hotels, OTAs, and meta-search engines.
RateGain reported a two-time increase in its net profit to Rs 146.39 crore in FY24. The operational revenue of the firm also increased by 56 percent y-o-y to Rs 255.81 crore in the same duration. Many tech companies are using ESOPs to recreate their employer brand image, as many prefer to join new startups due to the increase in mass layoffs in the past few months. Some startups, such as Paytm, Delhivery, Nykka, and Policybazzar, also announced their plans to expand ESOPs. E-commerce startup Nykaa has already expanded its Employee Stock Option Plan by offering its employees 4.73 lakh equity shares worth Rs 9.72 crore.
Conclusion
Travel Tech startup RainGain expanded its ESOP by allocating 59,904 shares worth Rs 4.5 crore to the employees. RateGain previously announced in its filing that it allotted 23,880 equity shares under the 2015 ESOP scheme in May after its last major stock option was approved. Meanwhile, the 36,024 equity shares were allotted under the stock appreciation rights scheme. After this allotment, the paid-up share capital of the firm will increase to Rs 11.79 crore.
This software company offers business intelligence hotel software for hotel commercial teams to solve guest engagements, digital marketing, and more. This Delhi NCR-based startup offers global SaaS solutions for travel and hospitality, which helps revenue growth through retention, acquisition, and wallet share expansion. The company earns most of its revenue through subscription-based services, including car rental companies and Online Travel agents.
