Tracxn Technologies IPO: All You Need To Know
Tracxn Technologies is set to launch its Rs 309-crore IPO on Oct. 10.
The Ratan Tata-backed data provider Tracxn Technologies Ltd. is set to launch its Rs 309-crore initial public offering on Oct. 10, even as the market remains volatile.
The market intelligence provider for private company data will sell shares through an offer for sale at a price band of Rs 75-80 apiece.
Flipkart promoters, which were early-stage investors in the company, will be exiting via the offer for sale. Tata will continue to remain invested in the company.
The sale of shares, at the higher end of the price band, will fetch Rs 309 crore for the company.
The issue represents 38.55% of the company's equity capital following the offering.
At the upper end of the price range, the company is worth Rs 802 crore.
Key Details
Issue opens on: Oct. 10.
Issue closes on: Oct. 12.
Price band: Rs 75-80 apiece.
Issue size: Rs 309 crore.
Face value: Rs 1 apiece.
Lot size: 185 equity shares and multiples.
Listing on: BSE and NSE.
Lead managers: IIFL Securities.
Use Of Proceeds
The issue is an offer for sale and the money raised will not come to the company.
The pre-IPO expenses incurred by the company will be fully reimbursed by the selling investors and reflect in the third quarter of the financial year.
Business
The company ranks among the top five players globally, in terms of number of companies profiled, and offers data of private market companies across sectors and geographies.
It has one of the largest coverage of private companies in emerging technology sectors, including Internet of Things, artificial intelligence, virtual reality, robotics, blockchain and electric vehicles.
The asset-light business model operates a Software as a Service-based platform, Tracxn, that has scanned over 662 million web domains, and profiled over 1.84 million entities across 2,003 feeds—categorised across industries, sectors, sub-sectors, geographies, affiliations and networks globally, as of June 30, 2022.
The platform has 3,271 users, across 1,139 customer accounts, in over 58 countries.
Its customers include Fortune 500 companies, private equity players and fund managers looking to invest in private markets.
The company has periodic contracts, which are renewed by the clients.
At the end of June 2022, the company had deferred revenue of Rs 27 crore.
Financials
The company turned profitable in the first quarter of the current financial year.
Peer Comparison
The company has no listed peer in India.
Risk Factors
If the company is unable to attract new customers, maintain existing customer account base or expand users within existing customer accounts of its platform, its revenue growth and profitability may be adversely affected.
The company derives, and expects to derive, all of its operational revenues from subscription by customers of its Tracxn platform. If its customers do not renew or expand their subscriptions or if they renew on less favourable terms, future revenue and operating results may be adversely affected.
If there are interruptions or performance problems associated with the platform, its business and financial condition may be adversely affected.
They may be required to raise additional funds through equity or debt in the future to continue to grow business, which may not be available on favourable terms or at all. Further, they will not receive any proceeds from the offer. The selling shareholders will receive the net proceeds from the offer.
It faces competition from, and could lose market share, to competitors, which could adversely affect business, financial condition and results of operations. Its competitors include, among others, private market data service providers such as Crunchbase, CB Insights, PrivCo and PitchBook, whose database include approximately 0.8 million, 0.5 million, 0.8 million and 3.4 million private companies, respectively, as of the second quarter of 2022.
Its success depends, in part, on the ability to expand use of platform by customers globally. Accordingly, the business is susceptible to risks associated with international operations.
(Corrects an earlier version that misstated the IPO opening and closing dates.)