Bhanu Chopra’s Unstoppable Journey: RateGain’s IPO Tale

In a dramatic turn of events during May 2021, Bhanu Chopra, Chairman, and Managing Director of RateGain, had a life-altering conversation from his farmhouse near Delhi airport. Stricken by the deadly Delta variant of Covid, Chopra was speaking with the CFO, who was battling the same virus. In the midst of it all, an exhilarated Chopra exclaimed, “Tanmaya, we have to do an IPO, and we have to do it before the year ends.” Chopra’s audacious decision was partly inspired by an unexpected source: his 16-year-old son. While quarantining together, his son passionately presented a case for relocating to North America, where 79 percent of RateGain’s revenue came from. Chopra was initially skeptical, but his son’s relentless optimism made an indelible impact. “There was gloom all around, and this guy is talking about growth and the future,” Chopra recalls.

RateGain’s journey under Chopra’s leadership began in 2004 when he started it as a price comparison website in his Delhi apartment. Over a decade, he bootstrapped the company, guiding it to profitable growth. From a modest ₹1 crore in revenue in its first year, RateGain soared to ₹64 crore by 2014. However, the turning point came in 2020 when the pandemic hit the travel and hospitality sector hard. For the first time since its inception, RateGain reported a loss, with revenue dropping to ₹250.8 crore in FY21.mChopra found his resolve to navigate the stormy waters of the IPO market when he watched former Cisco honcho John Chambers on CNBC. Chambers’ words resonated deeply: “These are times when good companies double down.” Encouraged by his son’s unwavering optimism and inspired by the performance of EaseMyTrip, a bootstrapped and profitable travel firm that had gone public, Chopra decided it was time for RateGain to take the IPO plunge.

RateGain’s IPO journey was nothing short of historic. The speed at which it was executed was “insanely awesome,” as Chopra describes it. The stock listed at a 14.16 percent discount from the issue price but that didn’t dampen Chopra’s spirits. December 17, 2021, marked RateGain’s 17th year, and it also happened to be his son’s 17th birthday. The timing seemed serendipitous as the markets were buoyant, riding high on optimism. The euphoria continued into the New Year, with RateGain’s stock touching a record high of ₹525 on January 18, 2022. Chopra and RateGain had every reason to celebrate as the company posted a profit after tax (PAT) of ₹11 crore, rebounding from consecutive losses in FY20 and FY21. However, just five months later, the stock plummeted to a record low of ₹235 on June 30, falling 43 percent from the issue price. Global markets were undergoing a price correction, and RateGain was caught in the storm.

Chopra admits that he was not immune to the stock’s wild swings. He empathizes with those who bought shares at the IPO price of ₹425, only to see the stock tumble. “It bothers me,” he concedes, emphasizing that the stock market’s performance is not reflective of the company’s fundamentals. RateGain boasts 14 years of consecutive profit and growth, with a remarkable bounce-back in performance after two years of pandemic-induced losses. Chopra maintains that the stock market is an output of public perception, something beyond the company’s control. He underscores the importance of concentrating on the input—the company’s performance and fundamentals. RateGain’s financials speak volumes, with impressive growth in operating revenue in FY23’s Q2 and H1. “I don’t think the stock market is a rational reflection of how we’ve performed,” Chopra observes.

In conclusion, Bhanu Chopra’s journey with RateGain is a testament to an entrepreneur’s resilience and vision. Despite facing numerous challenges, Chopra’s unwavering commitment to growth and his ability to draw inspiration from unlikely sources have fueled RateGain’s remarkable trajectory. As the company continues to weather the stock market’s highs and lows, Chopra’s focus remains firmly on what truly matters—building a robust and successful business.