Bengaluru-based market intelligence and analytics platform Tracxn Technologies is in a wait-and-watch mode over the timing of its proposed public offer amid stock market volatility, and will take a call on its listing once the situation stabilises, according to its founders.
The company — which late last year got approval for an offer for sale by co-founders (Neha Singh and Abhishek Goyal) and some existing investors — is not looking to tap an alternative route of funding in the interim.
Fresh round of capital raise via other modes “is not immediately on cards”, Goyal said.
This is because there is “no timing pressure” from investors on monetising holdings, and the company is generating adequate revenue for growth, he said, asserting there is no re-think on public offer plans and the company is firmly committed to going public.
“Markets are soft at the moment, so we have not put a timeline to the public offer,” Singh said.
As per the Draft Red Herring Prospectus (DRHP), the IPO entails only an offer for sale (OFS) of 3.86 crore shares. The company will not receive any proceeds from the initial public offering (IPO) since it is an OFS.
Investors such as Sachin Bansal and Binny Bansal, Elevation Capital, Accel India and SCI Investments as well as the two co-founders would be selling their part holdings in the proposed public offer, as per the DRHP.
Founded in 2013 by Singh and Goyal, first generation entrepreneurs, Tracxn positions itself as a global platform for tracking 1.4 million entities through 1,800 feeds categorised across industries, sectors, sub-sectors, geographies, affiliations and networks.
Backed by investors such as Accel Partners and Sequoia, Tracxn currently has 850- plus customer accounts across more than 50 countries.
Its clientele includes VCs, PE funds, merger and acquisition and innovation teams of Fortune 500 companies and investment banks, which use Tracxn data for daily deal sourcing, identifying takeover targets, deal diligence and tracking emerging themes across industries and markets.
The platform is also used by various governments, accelerators, incubators, and universities for tracking companies and sectors.
“By the time, we got approval (on DRHP), the markets had gone soft, and so we held on to the plans. The approval is valid for a year,” Singh said.
The company, which runs a Software-as-a-Service (SaaS) subscription model and enjoys cost arbitrage, has so far raised Rs 113 crore.
“The business does not require money right now, as it is generating revenues,” said Goyal. Also, Tracxn still has part of the funds it has raised in the bank.
“So far as the timing of the public offer is concerned, we will go by our advisors, and our bankers will give us an indication about the investor sentiments…The FII outflows are high and volatility index is high currently…These are complex equations so we will depend on advisors on the right time for launching the IPO,” Goyal said, confirming that the company is in wait-and-watch mode given the market volatility.
The demand for Tracxn’s offerings and services continues to be strong, according to the founders.
“Private market is growing at a strong pace, we rank among the top five players globally in terms of number of companies profiled, offering data of private market companies across sectors and geographies,” Singh noted.
Going forward, Tracxn is looking to expand customer base and double down in regions where its customers are present, expand its go-to-market and sales and marketing reach, as well as sell more deeply to existing customers, she added.