India’s Tracxn Technologies gets regulatory approval for IPO
By Vinu Lal
10:10, 23 November 2021
India’s Tracxn Technologies, a private equity-backed intelligence and analytics startup, received approvals to raise funds through an initial stake sale to the public, according to a regulatory web posting.
The company was issued an observation letter by the Indian market regulator Securities and Exchange Board of India (SEBI) on 17 November, the SEBI filing showed.
An observation letter from the market regulator is mandatory to launch an initial public offering (IPO), as per rules in the country.
The Bengaluru-based company had filed its Draft Red Herring Prospectus (DRHP) or early papers, with SEBI in August.
Complete offer for sale
The firm’s IPO would be through an offer for sale (OFS) of up to 38.67 million shares by existing investors, including Flipkart founders Binny Bansal and Sachin Bansal (up to 1.26 million shares each), Elevation Capital (up to 10.98 million shares), Accel Partners (up to 4.02 million shares) and Sequoia Capital (2.18 million shares).
Sachin Bansal and Binny Bansal hold 1.26% stake each, while that of Elevation Capital is 21.89%.
Angel investors such as Tata Group chairman emeritus Ratan Tata, private equity firms including Prime Venture Partners and KB Investments had invested in the company. As the IPO is a complete OFS, the company will not receive any proceeds, according to the DRHP.
Market intelligence provider
Tracxn Technologies is a global market intelligence provider of private company data and ranks among the top five players globally in terms of the number of companies profiled, according to an F&S Report mentioned in the DRHP.
The firm has an asset-light business model and operates a software as a service (SaaS)-based platform, Tracxn.
As of 31 March 2021, it has 2,358 users across 855 customer accounts in over 50 countries. For the financial year 2020-21, the company posted a 17.28% rise in revenue at INR437.8m ($5.9m) from operations, as compared to INR373.3m in the previous financial year.
IIFL Securities is the sole manager of the issue.