RateGain Travel Technologies IPO: How good is it?

In our story, RateGain Travel Technologies IPO: Information analysis, we shed light on the critical details of the IPO, along with important information about the company. Here we will answer some questions about RateGain and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? No. In the trailing twelve months (TTM) ending August 2021, the company reported a loss before tax of Rs 27.9 crore. 2) Will the company be able to scale up its business? Yes. With its large data lake, inter-connected products and significant opportunity to expand its MarTech business, the company will be able to scale up its business. 3) Does the company have recognisable brands truly valued by its customers? Yes. The company's products are critical for its customers, and given that its offerings are differentiated from its competitors, the brand is truly valuable. 4) Does the company have high repeat customer usage? Yes. RateGain's annual recurring revenues (refers to contractually recurring revenues and not one-off) have been more than 95 per cent across the three segments since FY19. 5) Does the company have a credible moat? No. The company's SaaS platform, interoperable products, data lake and AI & big data capabilities put it in a good position. However, given that most of these capabilities have been built in the last two to three years and the pandemic has hampered execution, it remains to be seen whether such capabilities translate into superior performance. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. The company is sufficiently robust to major regulatory or geopolitical risks. 7) Is the company