Tracxn technologies launched its initial public offering (IPO) October 10. The company will be selling its shares in the range of Rs 75-80 apiece with a lot size of Rs 185 shares. The issue can be subscribed till Wednesday, October 12. On day 1, the IPO was subscribed 0.71 times by retail investors and 0.01 times by non-institutional investors. Tracxn Technologies aims to raise Rs 309.38 crore via its initial stake sale, which is entirely an offer for sale (OFS) of up to 3.86,72,208 equity shares with a face value of Re 1 each by the promoters and existing shareholders of the company.
Neha Singh, Chairperson and Managing Director of Tracxn shared the company’s expansion plan, on turning profitable and navigating through stiff competition in the sector. Company’s current competitors include free online and offline sources of information on companies and businesses, including government records, company websites, and open online databases and other private market data service providers such as Crunchbase, CBInsights, PrivCo and Pitchbook. Addressing the stiff competition Singh says, ‘In private market we see there is a huge market for building platforms for selling to private market investors. In our case there are only 5-6 players globally which exist. In a short span of 9 years, we have become among the top 5 players in private market data space.’
Last year the company ended with Rs.65 Cr of total revenue which includes Rs. 63.5 Cr of revenue from operations, a 44% increase over the previous financial year. Growing at a CAGR of 30% Singh says 70% revenue comes from overseas markets with US market accounting for 27% of the revenues. Due to significant overseas operations the company enjoys a cost arbitrage of making in India and selling globally which is leveraged by investing in product technology according to Singh.
Even though company’s revenue has grown at a CAGR of 30%, the EBITDA and PAT have been in negative for the past 2 years to which Singh says, ‘We have recently turned profitable and the expansion has been fairly linear, so if you look at EBITDA it has expanded consistently on YoY basis. Last year 78%of our incremental revenue went directly into the bottom line, also last year the company generated free cash flow of Rs. 5 Cr.’
Tracxn is among the leading global market intelligence providers for private company data and ranks among the top five players globally in terms of number of companies profiled offering data of private market companies across sectors and geographies. They have one of the largest coverages of private companies in emerging technology sectors including IoT, artificial intelligence, virtual reality, robotics, block chain and electric vehicles.
