Ten years after launch, hotel IT business Rategain has confirmed its first ever funding round, with TA Associates stumping up the cash.
Financial details are not disclosed, although reports put the amount at between $32 million and $48 million.
The report goes on to say - without referencing any sources - that the deal values Rategain more than $160 million and that it is aiming to list on the Nasdaq with a valuation of more than one billion dollars.
TA Associates says that it has been watching Rategain for a while, liking its "compelling SaaS model...strong financial momentum and its high-quality and growing customer base."
While hospitality is RateGain's key vertical - it claims more than 5,500 hospitality clients around the world - it also works with fifty or so OTAs and has products for car rental firms, airlines and cruise companies.
Looking ahead, TA "will work with RateGain management to explore new business opportunities among current and prospective clients, and further geographic expansion, particularly in North America and Asia Pacific.”
The focus on North American and Asia Pacific is worth noting, if only because RateGain's London and Barcelona offices have been open for less than six months.
Bhanu Chopra, Rategain's founder and CEO, also mentioned "acquisitions" in his comment.
Hotel IT has seen some big deals over the past year - Alibaba's first big deal after its blockbuster IPO was a $450 million investment for 15% of Beijing Shinji, and let's not forget the $5.3 billion paid by Oracle for Micros.
Clearly, Rategain is further down the food chain, but the interest from an established and successful equity investor such as TA is good news for other businesses in the hotel IT space (of which there are many).
Investment image by Shutterstock