Bengaluru-based market intelligence platform Tracxn Technologies has filed its draft red herring prospectus (DRHP) with SEBI for an Initial Public Offering. According to the prospectus, Tracxn Technologies IPO will be purely an Offer for Sale (OFS) by promoter and other investors and the company will not get any funds from the public issue.
The company operates a comprehensive B2B Information platform that identifies, tracks and analyses private market companies and startups on deal sourcing, deal diligence and more. Tracxn operates on a SaaS based model and is amongst the leading global market intelligence providers for private company data. The company ranks amongst the top 5 players globally and competes with the likes of Pitchbook and Crunchbase.
Automated data engine, from IIT grads
The company was launched in 2015 by first generation entrepreneurs Neha Singh and Abhishek Goyal. Both founders had worked as venture capitalists at Sequoia and Accel Partners respectively and experienced a gap in information availability for private companies.
The core of the company’s products is a web crawling and data engine that extracts the data across multiple languages and uploads it instantaneously via APIs. Besides regulatory filings across the globe, the engine obtains information from websites, press releases, social media and events to identify and track private market company information.
Tracxn claims to track over 1.4 million private companies and offers varied set of information including profiles, funding rounds, capitalization tables, financials, valuation, team size, trends, and competition mapping. Over 70% of the company’s revenue comes from outside India – primarily EMEA and North America.
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Tracxn Technologies IPO – Clients and investors
Given the nature of Tracxn’s service offerings, most of its customers include private market investors including VC, PE funds and large corporates. According to DRHP, the company works with 855 subscription customers across 50 countries.
The company also has an illustrious list of investors which includes Ratan Tata, Nandan Nilekani, Sachin Bansal, Binny Bansal, and Neeraj Arora, among others. Private equity giant Elevation Capital (formerly SAIF Partners) holds 20.6% equity in the company on a fully diluted basis. Other prominent investors include Accel India IV (Mauritius) and venture capital fund Sequoia Capital India Advisors-owned SCI Investments V.
In the year ended 31 March 2021, the company posted revenue of INR55.7 crore and a comprehensive loss of INR4.1 crore. Since the company isn’t consistently profitable, only 10% shares have been proposed to be reserved for retail investors.