Tracxn Raises INR 139.22 Cr From Anchor Investors Ahead Of IPO

Bengaluru-based Tracxn Technologies has raised INR 139.22 Cr ($16.8 Mn) in an anchor round ahead of its INR 309 Cr initial public offer (IPO) on October 10.

The market intelligence firm allocated 17,402,494 shares at INR 80 apiece on Friday (October 7) to 11 anchor investors, both foreign portfolio investors and domestic funds.

The foreign portfolio investors who participated in the anchor round were India Acorn, BNP Paribas Arbitrage- ODI, Ashoka India Equity Investment PLC, Tara Emerging Asia Liquid Fund and Kotak Offshore (India Midcap Fund).

Further, the domestic funds that participated in the anchor round were Nippon Life, ICICI Prudential, Whiteoak Capital Flexi Cap Fund, Kotak Pioneer Fund, Reliance General Insurance and Motilal Oswal. Tracxn allocated 7,526,910 shares out of the total shares to four mutual funds via six schemes for a cumulative INR 60.22 Cr.

The market research startup filed its draft red herring prospectus (DRHP) in August last year and received SEBI’s approval for its IPO in November 2021. Tracxn’s IPO would only consist of an offer for sale (OFS) of 3.86 Cr shares, with existing stakeholders diluting their shares in the company.

The shares will be issued for INR 75-80 apiece. The IPO is valued at INR 309.36 Cr at the upper limit of the price band.

Founded in 2013 by Abhishek Goyal and Neha Singh, former venture capitalists, Tracxn is a SaaS platform that tracks private companies and startups. The Bengaluru-based startup has been backed by several angel investors such as Ratan Tata, Sachin Bansal, Binny Bansal and Girish Mathrubootham and VC firms such as Sequoia, Accel and Elevation Capital. 

The startup competes with Crunchbase in the segment and provides data for market intelligence, deal sourcing, identifying M&A targets, deal diligence and analysis and tracking to companies.

It has raised $16.5 Mn at a valuation of $70 Mn. Tracxn claims to have profiled over 1.84 Mn entities across 2,003 feeds, having scanned 662 Mn web domains as of June 30, 2022. The startup has 3,271 users across 1,139 customer accounts in over 58 countries, including multiple Fortune 500 companies.

In FY22, Tracxn reported a revenue of INR 63.45 Cr, up 45% as compared to INR 43.78 Cr in FY21. The startup managed to cut its losses by 9% to INR 4.85 Cr in FY22 from INR 5.35 Cr in FY21.

Tracxn’s IPO is the second Indian tech startup IPO this year after logistics startup Delhivery went public in an IPO in May this year. Last year, 11 Indian tech startups had their IPOs, including Paytm, Zomato and Nykaa. The tech startups raised $7.3 Bn via IPOs last year, but have had limited success on the bourses.

According to an Inc42 report, there are as many as 23 startups and unicorns waiting in tow to go public. Eight of them have already received SEBI’s nod for an IPO, while the rest have either filed draft documents or are working on them.

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