Synopsis:
RateGain Travel Technologies Ltd has announced the acquisition of US-based Sojern Inc. in a $250 million transaction, funded through internal accruals and debt. The deal enhances RateGain’s AI-first strategy, expands its hospitality-focused SaaS offerings, and adds Sojern’s $172.2 million revenue base and over 13,000 global customers.
A technology stock surged as investors reacted positively to the announcement of a $250 million acquisition aimed at strengthening its position in AI-powered SaaS solutions for travel and hospitality. The move underscores the company’s growth ambitions in the global MarTech space and expands its reach across large enterprises and SMB hotel segments.
RateGain Travel Technologies Ltd, with a market capitalization of Rs. 8,068.39 crore, opened at Rs. 663 today against its previous close of Rs. 644.35. The stock hit an intraday high of Rs. 699.10, marking an 8.5 percent rise from the previous close.
What’s the News?
RateGain Travel Technologies Ltd, through its wholly owned UK subsidiary, has entered into a definitive agreement to acquire Sojern Inc., a leading AI-led MarTech company in the hospitality sector.
The acquisition aligns with RateGain’s AI-first strategy, strengthening its vision of offering hotels a unified platform to acquire guests, engage and retain them during their stay, and expand wallet share.
Founded in 2007 and headquartered in the USA, Sojern serves more than 13,000 travel and hospitality customers worldwide. Its expertise in MarTech has gained adoption across hotels, destinations, attractions, and corporations.
By combining Sojern’s demand-generation strengths with RateGain’s distribution, analytics, and revenue optimization tools, the acquisition will enable a broader suite of solutions for hospitality players navigating a dynamic travel market.
The deal also enhances RateGain’s ability to serve both large global clients and fast-growing SMB hotel chains, offering advanced AI-powered solutions to improve efficiency and guest experiences. In CY2024, Sojern reported $172.2 million in gross revenue. The acquisition, valued at $250 million, will be funded through a mix of internal cash reserves and debt.
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Management Commentary
Bhanu Chopra, Founder and Chairman, RateGain, said, “This acquisition is another important step in advancing RateGain’s AI-first mission. Sojern’s proven financial performance and expertise in MarTech complement our unified vision of embedding AI across every workflow in hospitality, from guest acquisition to retention and wallet share expansion.
Just as important, both organizations share a culture of customer orientation, innovation and agility. Together, we can help hospitality businesses make smarter decisions, adapt faster to changing guest behaviors, and create seamless experiences throughout the guest journey, while building a thriving workplace for our teams.”
Mark Rabe, Chief Executive Officer, Sojern, added, “Joining RateGain represents a natural next step for Sojern as it will allow us to continue executing on what we set out to do: Empower travel marketers to acquire and retain customers cost efficiently, at scale.
We share not only a common vision of using AI and data to transform the travel ecosystem, but also a culture that values people and accountability. By combining our product, people and financial strengths, we plan to accelerate growth by delivering even greater value to our travel partners globally.”
Financial Snapshot
On a quarter-on-quarter basis, revenue rose from Rs. 261 crore to Rs. 273 crore, an increase of 4.6 percent. Operating profit fell from Rs. 61 crore to Rs. 50 crore, a decline of 18 percent. Profit before tax dropped from Rs. 72 crore to Rs. 61 crore, down 15.3 percent, while net profit declined from Rs. 55 crore to Rs. 47 crore, a fall of 14.5 percent.
On a year-on-year basis, revenue increased from Rs. 260 crore to Rs. 273 crore, up 5 percent. Operating profit remained stable at Rs. 50 crore. Profit before tax rose from Rs. 58 crore to Rs. 61 crore, an increase of 5.2 percent, while net profit improved from Rs. 45 crore to Rs. 47 crore, a rise of 4.4 percent.
About the Company
RateGain Technologies Limited is a global provider of AI-powered SaaS solutions for travel and hospitality, working with over 3,200 customers and 700 partners across more than 100 countries.
The company helps accelerate revenue growth for hotels, airlines, car rentals, cruise lines, and OTAs through acquisition, retention, and wallet share expansion. Founded in 2004 and headquartered in India, RateGain today counts 26 of the Top 30 Hotel Chains, 25 of the Top 30 OTAs, 3 of the Top 4 Airlines, and all major car rental companies, including 15 Global Fortune 500 firms, among its clients.
Written By Manan Gangwar
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