Tracxn Gets SEBI Nod To Offload 3.86 Cr Shares Via IPO

Bengaluru based Tracxn Technologies Ltd–the parent company of data intelligence platform Tracxn has received the market regulator’s approval for its initial public offering (IPO).

The IPO would consist of only an offer for sale (OFS) of 3.86 Cr shares.

As per the latest update on the SEBI website, the DRHP was approved on November 17.

As per the DRHP filed in August, Tracxn cofounders Abhishek Goyal and Neha Singh will both offload around 76.6 lakh of equity shares each. 

Elevation Capital, which holds nearly 22% stake in the company will offload up to 1.09 Cr equity shares.

Flipkart founders Binny and Sachin Bansal, who hold 1.26%  stake each in the company, will both sell up to 12.6 lakh of equity shares respectively. 

Accel India, which owns 4.01% will offload up to 40.17 lakh equity shares. SCI Investments will sell up to 21.81 lakh equity shares. SCI holds 2.17% stake through SCI Investments V.

Sahil Barua, the CEO of Delhivery will offload up to 2,07,548 shares. Barua holds a 0.63% shareholding in the data intelligence company.

Girish Mathrubootham, the founder and CEO of Nasdaq listed Freshworks, with a holding of 0.30% stake in the company will offload 295,952 shares.

Founded in 2013 by former venture capitalists Singh and Goyal, Tracxn is also backed by 3One4 Capital, Sequoia India, Prime Venture Partners, and KB Investment. 

The eight year old platform is also backed by serial investors such as Tata Sons chairman emeritus Ratan Tata, former Infosys CFO Mohandas Pai among others.

In terms of the financials, its draft prospectus showed that it posted a revenue of INR 43.7 Cr from operations in the last financial year (FY21), a rise of 17%  as compared to INR 37.3 Cr in FY20. Tracxn recorded a total expenditure of INR 61 Cr in FY 21, a slight rise from INR 60.3 Cr in FY 20. 

It substantially narrowed its loss to INR 5.3 Cr in FY21 as opposed to INR 54 Cr in FY 20.

Considered as the Indian version of Crunchbase, the platform raised 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. 

Valued at around $70 Mn the startup has raised $16.5 Mn till date. The platform facilitates users with information related to startups and private companies present in 30 countries. The platform is widely used by VCs, Fortune 500 Companies and PE Funds, among others.

With SEBI’s approval, Tracxn has joined a number of tech-backed startups which are on their way to hit the public markets. 

Paytm is the latest new age company to get listed, although at a discount. On November 18th, Paytm made its stock market debut and got listed at a discount of over 9% from its issue price of INR 2,150, raising questions over the fate of other tech backed startups raring to go public.

Prior to Paytm’s listing, Nykaa and Fino Payments Bank got listed with the former witnessing a bumper listing, while Fino listed with a discount of over 5%.

Fintech major MobiKwik has reportedly delayed its IPO amid fall in valuations and hospitality unicorn OYO and travel platform Ixigo are yet to get the Securities and Exchange Board of India’s (SEBI) green signal to offer their shares to the public.

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