SUMMARY
Elevation Capital has asked Tracxn to provide an exit through a qualified IPO or strategic sale by investment exit date
If Tracxn fails to meet Elevation’s terms then it has to list SAIF Securities on any stock exchange through a liquidity IPO
Tracxn has converted itself into a public company
Startup intelligence and analytics firm – Tracxn – has joined the bandwagon of Indian startups and companies that will be going for initial public offering (IPO). The startup has converted itself into a public company, a step mandatory required before a company can go public.
According to a CNBC-TV18 report, Elevation Capital which owns 20% stake in Tracxn has put down a ‘founder lock-in’ till the time of Tracxn’s qualified IPO or till it sells shares through a strategic sale or buyback. Elevation Capital (earlier called SAIF Partners) has asked Tracxn to provide an exit a qualified IPO or strategic sale by investment exit date of April 2022. Elevation Capital said for a qualified IPO, the offer price will be determined at a minimum pre-money valuation of $100 Mn and if it fails to do so or strategic sale till April 2022, then Tracxn will have to list SAIF Securities on any stock exchange through a liquidity IPO.
Founded in 2013 by former venture capitalists Neha Singh and Abhishek Goyal, Tracxn has been backed by Elevation Capital, Accel India, 3One4 Capital, Sequoia India, Prime Venture Partners, and KB Investment. The company is also backed by Tata Sons chairman emeritus Ratan Tata, Freshworks’ Girish Mathrubootham, former CFO of Infosys Mohandas Pai, Delhivery’s Sahil Barua, and Flipkart’s Sachin Bansal, among others.
The data intelligence platform in 2019 had bagged INR 20.94 Cr in a Series B round in 2019 and had raised an undisclosed amount of funding from a group of angel investors including Nandan Nilekani, Mohandas Pai, former WhatsApp vice president Neeraj Arora and Junglee co-founder Anand Rajaraman, among others. Till date, Tracxn has raised close to $16.5 Mn from multiple investors. Tracxn helps users to track startups and private companies spread across 300 technology sectors and 800+ emerging themes in more than 30 countries. The startup boasts of clients such as VCs, PE Funds, M&A and Innovation teams of Fortune 500 companies and investment banks. The startup competes against the likes of Crunchbase, Venture Intelligence and Tofler.
If Tracxn goes for IPO, it will be joining fashion ecommerce startup Nykaa, digital payments startup MobiKwik, online automobile classified company CarTrade, Vijay Shekhar Sharma-led PayTm and Fino Payments Bank, among others. It has to be highlighted that Tracxn would be the lowest valued startup at $70 Mn to try its fate in the public market.
