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Founded in 2013, Tracxn Technologies Limited the leading global market intelligence providers for private company data and rank among the top five players globally in terms of number of companies profiled offering data of private market companies across sectors and geographies. It has one of the largest coverage of private companies in emerging technology sectors including IoT, artificial intelligence, virtual reality, robotics, blockchain and electric vehicles.

* The company has an asset light business model and operate a Software as a Service ("SaaS")-based platform, Tracxn, that scanned over 662 million web domains, and profiled over 1.84 million entities across 2,003 Feeds categorized across industries, sectors, subsectors, geographies, affiliations and networks globally, as of June 30, 2022.

* The company has 3,271 users across 1,139 Customer Accounts in over 58 countries, as of June 30, 2022, and its customers include several Fortune 500 companies and/or their affiliates.

* The company supplies its products to customers in over 25 countries covering five continents i.e., North America, Europe, Asia, South America and Africa.

* The company offers private company data to its customers for deal sourcing, identifying M&A targets, deal diligence, analysis, and tracking emerging themes across industries and markets, among other uses, through its subscription-based platform, Tracxn.

Outlook & Valuation:The company is a leading global market intelligence provider for private company data and ranks among the top five players globally in terms of the number of companies profiled offering data of private market companies across sectors and geographies. The company has witnessed strong growth in its top line in the previous three years due to the technology & startup boom during the pandemic and robust M&A activities. Nevertheless, the company faces significant competition from private players such as Crunchbase, CBInsights, PrivCo & Pitchbook, and free online and offline sources of information on companies & businesses, including government records, company websites, and open online databases. Due to the rising interest rates globally & recessionary conditions in major markets like North America & Europe the Private Equity Markets, Venture Capital markets, Investment Banks, and Family offices are witnessing a significant cutback in terms of activities and traction; additionally, M&A activities have been subdued. Thus we believe that the company will find it difficult to substantially grow its client base and top line in the coming years. Finally, the exorbitant valuation of Price to Sales of ~12.5 (Based on FY 22 numbers and Upper band price) makes it very difficult to recommend this issue. Thus we have assigned Avoid Rating for this issue.

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