Today, SiteMinder, an Australian software company focused on the hospitality industry, announced a $ 70 million round that the company valued at $ 750 million. That's about $ 1.08 billion in Australian dollars, which makes the company a down under unicorn, even if it's a bit shy here in America.
According to SiteMinder The round was “led by equity funds managed by BlackRock.” The company previously raised capital from TCV and Bailador.
TechCrunch discussed SiteMinder earlier this year as part of our ongoing review of companies that have reached certain annual recurring income thresholds (ARR). At that point, we found that the company's revenue was AU $ 100 million, while it was slightly below that in US dollars.
Since we understand the company's new valuation in both countries' currencies, it is possible to calculate the company's current ARR multiple. It's about 11x. This price is similar to what public SaaS companies are demanding in today's market, according to the Bessemers Cloud Index.
SiteMinder announced some time ago that it exceeded the ARR $ 100 million mark in 2019. Software companies – SiteMinder also appears to generate service-oriented revenue from activities such as website design – of a similar size, tend to slow growth in percentage.
To understand the company's growth strategy, TechCrunch asked SiteMinder if the new capital would enable it to maintain the current pace of ARR growth. The company had cited “accelerated launch strategies” as a possible use for its new funds to clarify the issue.
According to Sankar Narayan, CEO of SiteMinder, the answer is "yes, absolutely". Narayan said the company "has the largest global presence and multilingualism in our category, which gives us pole position as technology adoption across the hotel is accelerated. Narayan also announced the planned discontinuation and expansion of sales activities in Europe and." Asia to offer his company "even greater growth opportunities".
SiteMinder operates globally and offers a closer presence to some customers (80% of the company's revenue is international). However, this division raises a question. Fast growing companies often struggled to keep their culture together in a single office. SiteMinder operates in over a dozen countries, which is likely to make the problem worse.
Narayan told TechCrunch that SiteMinder "was not a stranger to the challenges of a global company." To counter cultural migration, he went to an overseas office every month and his company recently "had a shadow for all employees." "Introduced equity plan" with which everyone can benefit from the progress of the company.
With new capital and probably more employees and offices, it will be interesting to see what new things require the cultural integrity of the company.
Regardless, SiteMinder is now the founding member of the AU $ 100 million ARR club and a unicorn in local currency. And since it is more difficult to achieve this rating outside Silicon Valley than inside Silicon Valley, none of these awards should be considered dismissive. They are compliments.