Last week, Hotel commerce platform SiteMinder announced raising $100 million in a pre-IPO funding. According to the news, Fidelity International joined AustralianSuper, Blackrock, Ellerston Capital, Pendal Group, and Washington H. Soul Pattinson in this round.
The funding comes as SiteMinder is valued at just over $1 billion, with an imminent IPO launch coming. SiteMinder CEO Sankar Narayan told reporters that despite the pandemic, the business had been resilient in the face of significant disruption, delivering revenue of more than $100 million in FY2021. He says customers grew by 40% for its payments and other transaction-based products. He was also quoted saying:
“We thank all of our shareholders for their ongoing trust as we continue to perform against an evolving industry backdrop. We have maintained high levels of engagement with customers and partners to deliver consistently strong business performance and demonstrate SiteMinder’s resilience during these difficult industry conditions. Our continued investment in expanding our product suite puts us in a strong position to benefit from the recovery in travel which we are beginning to see, particularly in the many travel markets where bookings are bouncing back to pre-pandemic levels.”
SiteMinder operates in 150 countries for 35,000 hotels and generated pre-pandemic revenue for hotels in the neighborhood of US$35 billion. According to the news, AustralianSuper senior portfolio manager George Batsakis said the super fund was glad to double down on the business as it moves towards a public listing.
“After joining SiteMinder’s capital raise of over AU$100 million in January 2020, at a time where we could not have foreseen the events ahead, what we have seen is SiteMinder show tremendous agility, resilience and innovation, particularly as the needs of their customers and partners have rapidly shifted.”
He went on to say the pandemic has shown the importance of easy-to-use technology platforms for hotels.
SiteMinder partners with Airbnb, Booking.com, Expedia, and Hostelworld and hotel chains such as Hyatt and Best Western.