SiteMinder: Over $70 Million Pre-IPO Funding Round And $750 Million Valuation

By Amit Chowdhry ● Feb 10, 2020
  • SiteMinder is an Australian-based hotel guest acquisition and management cloud platform that recently raised more than $70 million at a $750 million valuation

SiteMinder is an Australian-based hotel guest acquisition and management cloud platform that recently raised over $70 million in funding at a $750 million valuation. This funding represents a pre-IPO round.

This funding round was led by equity funds managed by BlackRock. And other investors in this round include AustralianSuper, Ellerston (through the Ellerston JAADE Private Assets Fund), and Pendal Group.

The technology developed by SiteMinder has diversified to become the global hotel industry’s leading guest acquisition platform. It is now used by over 35,000 hotels in 160 countries to generate over $28 billion in revenue each year.  The company’s partners include Airbnb, Booking.com, Expedia, and Hostelworld. The customers in the U.S. include Hyatt, Choice Hotels International, and Best Western Hotels & Resorts.

This funding round follows a strong year for the company. Siteminder processed 105 million bookings through its platform for more than 35,000 hotels worldwide. And the company also surpassed $70 million in annual recurring revenue, of which 80% was generated from global markets outside of Australia through both monthly subscriptions and newer transactional revenue streams.

This round of funding will be used to accelerate SiteMinder’s growth and innovation, specifically through accelerated go-to-market strategies and increased investments in R&D led from Sydney. And the company will also further its international expansion and continue the growth of its more than 900 staff — who are located in six offices spanning Sydney, Bangkok, Dallas, Galway, London, and Manila.

SiteMinder’s technology is available today in eight languages and supported with customer service in a further three. And To SiteMinder CEO and Executive Director Sankar Narayan, there has never been a more opportune time to capitalize on an online accommodation industry that has grown 11% per annum over the last 15 years and still represents less than 50% of all accommodation bookings.

As the global landscape for hotel technology becomes increasingly fragmented, and remains largely unpenetrated with connected technology, we couldn’t be more thrilled with the quality of new partners we have gained to further cement our position as the global market leader, now and into the future. This investment is a strong endorsement of our growth ambitions to continue building the world’s largest and most open guest acquisition platform for hotels, said Narayan.

SiteMinder Chairman and Co-Founder Mike Ford pointed out SiteMinder fills a necessary void for hoteliers everywhere.

We are delighted to have such a wealth of expertise and experience among our shareholders, to walk the exciting path forward with us, stated Ford.

SiteMinder’s early investors including Bailador Technology Investments, Les Szekely of Equity Venture Partners, and TCV have been strong supporters and shareholders of the company.

The shift in consumer engagement is changing the structure of online travel, noted David Yuan, General Partner at TCV and SiteMinder board member. We wanted to find a technology provider that could power a better consumer experience and empower hoteliers to benefit from this shift. We searched globally and found the best—SiteMinder in Australia. In working together over the years, we’ve seen SiteMinder emerge as the global powerhouse in the category, and an important franchise in online travel.