Australian online hotel distribution firm SiteMinder is to accelerate global expansion following a $5 million cash injection.
The investment has been made by venture capital group Bailador Investment Management, which specialises in providing expansion capital to information technology companies.
The funding will assist SiteMinder in further accelerating growth in Europe, Asia and the Americas, with new products and marketing programmes. These will be aimed at building the online distributor’s client base of hotels to help them extend their reach on the web.
The capital raising was arranged by Sydney-based corporate advisory firm, Growth Equity Partners.
SiteMinder, established in 2006, has more than 6,000 hotels in 90 countries using its distribution platform and commission-free booking engine software to generate more than $2 billion in reservation revenue a year.
Managing director Mike Ford said: “Over the past six years SiteMinder has invested significant capital developing one of the world’s most comprehensive and popular hotel room inventory distribution platforms.
“We now enjoy a leading market share in the Asia Pacific region and significant traction in key international markets.
“The additional capital will allow us to quickly build on an already strong European presence, underpinned by the success of our London office which we opened in 2010.
“We will fast-track the development of innovative product features, expand our sales and support capabilities in new and existing markets, and drive further adoption of our platform internationally.”
Ford added: “Hoteliers today want smarter, faster and more reliable distribution tools to link their inventory to online channels and to automate the delivery of online reservations directly into their hotel booking systems. SiteMinder is at the forefront of developing cloud-based, zero-transaction-fee technology that helps hotels boost revenue and efficiency.”
Bailador directors David Kirk and Paul Wilson, who will join the SiteMinder board, said: “Bailador seeks to support successful, highly motivated and innovative web-related companies with excellent growth prospects. SiteMinder has developed a leading technology solution, as evidenced by the exceptional growth in their client base and impressive record of customer retention.
“We are confident that the additional capital will help SiteMinder establish a dominant position in this evolving market and we look forward to partnering with them on their exciting journey.”