SiteMinder, a leading global platform for open hotel commerce, has announced a successful pre-IPO funding round, securing over AU$100 million in capital. The funding round includes both primary and secondary investments, marking a significant milestone in the growth of SiteMinder’s shareholder base. Notably, Fidelity International, a renowned investment and asset management company, joins the esteemed group of shareholders.
Alongside Fidelity International, existing shareholders such as AustralianSuper, BlackRock-managed equity funds, Ellerston Capital, Pendal Group, and Washington H. Soul Pattinson have participated in this funding round, further solidifying their commitment to SiteMinder since the onset of the COVID-19 pandemic. Bailador Technology Investments, Les Szekely of Equity Venture Partners, and TCV, early investors in SiteMinder, also continue to support and hold shares in the company.
Despite the immense disruptions faced by the global travel industry during the pandemic, SiteMinder has demonstrated resilience in its revenue and business performance. Throughout FY2021, the company achieved revenue exceeding AU$100 million, witnessed a 40% growth in customers utilizing its transaction-based products, including payment solutions, and sustained a decline in revenue of less than 6% in constant currency terms. As a result, SiteMinder’s valuation remains above AU$1 billion, based on this recent pre-IPO funding round.
Expressing his enthusiasm, Sankar Narayan, CEO of SiteMinder, welcomes Fidelity International as a respected global investor, further strengthening the already impressive roster of shareholders. Narayan extends gratitude to all shareholders for their unwavering support during the challenging industry landscape. With their continued trust, SiteMinder is committed to delivering exceptional performance and navigating the evolving hospitality sector.
During the past 18 months, SiteMinder has significantly expanded the reach and importance of its platform within the diverse sectors of the hotel industry through various initiatives, including:
- SiteMinder has witnessed significant growth in its metasearch and hotel payments programs, Demand Plus and SiteMinder Pay, since May 2021. This growth can be attributed to the addition of trivago to their platform and the ability for hotels to process guest payments within SiteMinder’s system. In the past year, Demand Plus and SiteMinder Pay have experienced higher adoption rates than any other offerings by SiteMinder.
- SiteMinder has initiated a trial for a new digital acquisition strategy aimed at small hotel operators. This strategy complements their existing go-to-market models and is designed to enhance their services for this specific segment.
- SiteMinder launched SiteMinder Multi-Property in May 2021, a product specifically designed to simplify the complexities associated with hotel distribution for chains and groups. Early adopters of SiteMinder Multi-Property have reported remarkable results, including a reduction in operational inefficiencies from up to 160 hours down to just five minutes for one user. Another user has reported the ability to reallocate the time of 10 hotel staff due to the improved efficiency of the system.
- In November 2020, SiteMinder introduced the SiteMinder Partner Program, which has recently reached a milestone of 500 signed members. This program has significantly expanded SiteMinder’s ecosystem, bringing their total number of partners worldwide to over 1,300.
- SiteMinder launched the World Hotel Index in April 2020. This publicly-available tool sources data from hotels and 400 hotel booking channels globally connected to SiteMinder. The World Hotel Index enables hotel operators to track and analyze trends in their respective countries and regions, providing valuable insights for their business operations.
Narayan emphasizes that SiteMinder has maintained strong engagement with customers and partners, leading to consistent business performance and showcasing the company’s resilience amidst challenging industry conditions. SiteMinder’s continuous investment in expanding its product suite has positioned it favorably to capitalize on the recovery in the travel sector, which is already evident in numerous markets where bookings are rebounding to pre-pandemic levels.
Reflecting on their involvement in SiteMinder’s capital raise of over AU$100 million in January 2020, George Batsakis, Senior Portfolio Manager from AustralianSuper, acknowledges the unforeseeable circumstances at the time. However, he commends SiteMinder for demonstrating remarkable adaptability, resilience, and innovation, particularly in response to the evolving needs of its customers and partners. Batsakis highlights the significance of user-friendly technology platforms for hotels, which have become increasingly vital during the unprecedented challenges of the past 18 months. AustralianSuper is delighted to expand its support for SiteMinder as the company continues to deliver these essential services to its customers.