Private equity firm Accel, Flipkart founders Sachin and Binny Bansal, Freshworks founder and chief executive officer Girish Mathrubootham are among investors looking to exit Tracxn Technologies Ltd during its upcoming initial public offering (IPO), the startup intelligence and analytics firm said in its draft prospectus.
Bengaluru-based Tracxn will seek to raise up to ₹309 crore through the IPO that will open on 10 October and close 12 October. The issue will comprise an offer for sale (OFS) of 38.67 million equity shares at a price band of ₹ 75-80 apiece.
The two founders of Flipkart, who invested in Tracxn as early as 2012, are looking to offload their entire 1.26% stake each in the company worth ₹94.7-101 crore each. Delhivery co-founder and CEO Sahil Barua, who is also an angel investor in Tracxn, will sell about a third of his shares to raise up to ₹16.6 crore.
The company had filed draft papers with the Securities and Exchange Board of India in August 2021 and received approval from it in November 2021. Tracxn was founded in 2012 by Neha Singh and Abhishek Goyal and backed by Elevation Capital, Accel Partners, Sequoia Capital, Prime Venture Partners and KB Investments. Both the promoters, who hold about 25.46% each, will sell up to 7.66 million shares for up to ₹61.3 crore.
Among the institutional investors looking to exit are Accel and SCI Investments.
Accel will offer four million shares worth up to ₹32.1 crore, and exit the company. It had first invested in Tracxn in 2016.
Venture capital firm Elevation Capital will be the largest seller in the IPO, offering 109.8 million shares to raise up to ₹87.8 crore.
Operating on a software-as-a-service (SaaS) platform, Tracxn has 3,271 users across 1,139 customer accounts in over 58 countries as of June-end. It offers customers private company data for deal sourcing, identifying merger and acquisitions targets, deal diligence, analysis and tracking emerging themes across industries and markets, among other uses, through its subscription-based platform.
The company, which competes with Crunchbase, CB Insights, PrivCo and Pitchbook, is among the top five players in the private market data space globally.
Tracxn earns more than 70% of its revenue from abroad, primarily Europe, Middle East and Africa, according to the company. It had reported an operating revenue of Rs 63.45 crore in the financial year ended 31 March 2022, a 45% rise from the previous year, driven by higher income from the sale of subscription services on its platform. It reported a loss of Rs 4.85 crore in FY22, down from Rs 5.35 crore in FY21.