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Tracxn Technologies Ltd IPO

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About Tracxn :

Tracxn is one of the top worldwide market intelligence suppliers for private company data and is ranked among the top five players internationally in terms of the number of companies profiled that supply data on private market enterprises across industries and geographies. 

They have one of the broadest coverage of private businesses in new technological fields like the Internet of Things, artificial intelligence, virtual reality, robots, blockchain, and electric vehicles.

They have an asset-light company strategy and run the Software as a Service (“SaaS”)-based platform Tracxn, which serves 855 subscription customers in 50 countries, including venture capital, private equity funds, and large corporations.

Over 70% of the business’s income is generated outside of India, especially in Europe, the Middle East, and Africa. The company is one of the top five participants in the private market data area internationally and competes with Crunchbase, CB Insights, PrivCo, and Pitchbook.

Details on IPO :

Tracxn, a startup intelligence and analytics company with offices in Bengaluru and funded by Accel and Sequoia Capital, the investors that founded Flipkart, filed draft preliminary documents with the SEBI in order to seek money through an IPO.

A total of 38.67 million shares held by shareholders and promoters make up the original offering (OFS). This proposal includes up to 7.66 million shares each from Neha Singh and Abhishek Goyal (who each hold the highest stake of 25.46%), up to 1.26 million shares each from Flipkart founders Binny Bansal and Sachin Bansal (who each hold 1.26% stake), up to 10.98 million shares from Elevation Capital (who hold stake of 21.89%), up to 4.02 million shares from Accel (who hold stake of 4.01%), and up to 2.18 million shares

IIFL Securities Limited is the issue’s lead manager, and Link Intime India Private Limited is its registrar.

Objective of the Issue :

The money raised through the sale of equity shares and the sale of up to 38,672,208 equity shares by the selling shareholders will be used to benefit from the equity shares’ listing on stock exchanges.

IPO Key Points

Strengths : 

1. An industry leader in providing unique private market data and analytics

2. A diverse, enduring, and expanding base of international clients

3. An internally built, scalable, and secure technological platform

4. Significant cost benefits of operations in India

Risks :

1. The inability to acquire new clients, keep existing clients, or add users to existing customer accounts.

2. Consumers subscribe to the platform to obtain revenue from operations; as a result, if the customers do not renew their subscriptions, the revenues will suffer.

3. Delays or performance issues relating to the platform and business

4. Reduced demand for the platform and services due to inability to gather and keep accurate, complete, or reliable data
5. Use of open source software could expose the business to claims contesting ownership of the product and adherence to open source license restrictions.

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