Tracxn on why it chose to list in India even though 70% revenue comes from international markets

Yatti Soni | | Updated on: Oct 30, 2021
ipo orange black dice blocks on white background standing for initial public offering

ipo orange black dice blocks on white background standing for initial public offering | Photo Credit: donskarpo

Co-founder Abhishek Goyal says it was as much a financial decision as an emotional one for the company

Similar to most Indian SaaS companies, a majority (70 per cent) of Tracxn’s revenue comes from international markets but this has not affected the company’s plan to list in the Indian markets.

Tracxn has filed the draft document with SEBI for IPO in August 2021. It is a private market intelligence platform that identifies, tracks, and analyses private market companies and start-ups on deal sourcing, deal diligence, and more.

Commenting on the decision to list in India, co-founder Abhishek Goyal told BusinessLine , “We think that Indian companies born in India should go public in India, so that we can have local wealth creation. We have always believed that the Indian market will like SaaS companies that have high gross margins. It was as much a financial decision for us, as an emotional one,” said co-founder Abhishek Goyal.

Further, co-founder Neha Singh said, the company’s decision to go public was impacted by various reasons such as the organic growth of the company as its data became richer over the year, and the fact that Tracxn has turned cash flow positive and claims to be close to turning bottom line positive as well.

Also read: Chennai is quickly establishing itself as India’s SaaS centre: EY White Paper

“So I think the company’s growth became healthy, in a sense that we were adding money to the treasury. We have not used all the venture capital money that we had raised. In fact the last rounds that we raised are still in the bank, and then we also started adding money to the treasury. All these reasons led us to take the step towards an IPO,” Singh added.

She also noted that the number of unicorns made in the year 2010 was just one globally and today the world has reached nearly 300 run rate annually. This means that there is like a 300-fold increase in just this activity and there are many other instances like total combined valuation of global unicorns has crossed $3 trillion. “These instances show that the market is actually becoming very sizable and it is just increasing one way. So we believe that we are at a very interesting phase and which is why IPO sort of made sense because it just allows you to continue building this for the next decade,” Singh added.

Tracxn claims to have 70 percent international customers and 30 percent customers from India. These customers are said to be coming from various countries like North American countries, parts of Europe, UK, Germany, and APAC, among others.

Majorly there are three buckets of customers of Tracxn including private market investors which make nearly half of its customer base and the other half are corporates along with some smaller customer segments like governments, and universities. The company depends on a platform subscription model for its revenue.

Talking about the competition, Singh said that in the whole sort of private market data space globally, there are only about four or five players which are there in this market so we are at a fairly good position. She added that being a data company a lot of the company outreach also happens through their content. For instance, corporates or investors searching for semi-conductor report or self driving car technology reports, would come across the company’s content and thereon end up becoming a paying customer.

Published on October 30, 2021
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