Tracxn set for an IPO as Elevation Capital seeks exit, turns into a public company

Startup intelligence and market research platform Tracxn is set to file for an initial public offering (IPO), sources told CNBC-TV18 and has converted into a public company, as per regulatory filings.

Founded in 2012 by former venture capitalists Neha Singh and Abhishek Goyal, Tracxn is the Indian version of Crunhcbase.

Tracxn counts marquee investors on its cap table, including Elevation Capital, Accel India, Sequoia Capital, and 3One4Capital, along with names such as Ratan Tata, and angel investors who include Flipkart founders Sachin Bansal and Binny Bansal, and Freshworks founder and CEO Girish Mathrubootham among others.

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Elevation Capital owns close to 20 percent stake while the founders together control 45 percent of the company, as per sources in the know told CNBC-TV18. The regulatory filings show that the largest investor Elevation Capital has put in certain conditions for making an exit from the company by April 2022, seven years since participating in the company's Series A round.

Formerly known as SAIF Partners, Elevation Capital has put down a 'founder lock-in' till the time of a qualified IPO or till SAIF (Elevation Capital) sells shares through a strategic sale or buyback.

Also, Elevation Capital has asked the company to make the best efforts to provide an exit to SAIF through a qualified IPO or strategic sale by the investment exit date (April 2022).

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For a qualified IPO, Elevation Capital said the offer price will be determined at a minimum pre-money valuation of $100 million. Further, the investor goes on to say that if Tracxn fails to do a qualified IPO or strategic sale till the investment exit date, the company will have to list SAIF Securities on any stock exchange through a liquidity IPO.

Tracxn co-founder Abhishek Goyal and Elevation Capital did not respond to CNBC-TV18's queries.

Tracxn competes with the likes of Venture Intelligence and Tofler in offering market intelligence on companies, especially startups. The company saw revenue from operations of Rs 37 crore in FY20, up from Rs 33 crore the previous year, while it made a loss of Rs 19 crore, as per filings.

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