Chairman's Letter
Letter to the Shareholders
Dear Shareholders,
FY24 has been a year of resilience and continued growth for Tracxn. Globally, it was
perceived as a challenging period for private market funding, with terms like
"funding winter" frequently making headlines. Global funding reached a near
six-year low, decreasing by nearly 44% compared to the previous year, with funds raised by
Indian companies down by about 70%. As a key market player, we also felt the impact.
However, despite these challenges, our business has remained resilient and has continued
to grow year-on-year.
Additionally, due to our recent aggressive focus on various growth initiatives, we had
one of the highest volume growth in the last quarter of FY24. We expect this momentum to
further accelerate as markets improve.
Our Revenue from Operations for the year stood at INR 82.8 crores. We continued to have
profitable operations with an expanded bottomline, ending the year with an EBITDA of INR
4.6 crores and a PAT of INR 6.5 crores, with EBITDA and PAT margins of 5.5% and 7.9%,
respectively. We generated INR 10.3 crores of Free Cash Flow and ended the year with about
INR 75.2 crores cash and cash equivalents. Due to the high operating leverage of the SaaS
business model, a significant portion of incremental revenue flows directly to the bottom
line. In FY24, 43% of the incremental revenue was added to the EBITDA. In FY23 and FY22,
this was 31% and 77% respectively.
We continued to expand our global footprint, both in terms of our customer base and our
coverage of private markets. Our customer base expanded to 1,312 active accounts across
over 50 countries with nearly 66% of the total revenue coming from international customers
as of March 31, 2024. The top five countries based on the number of customer accounts
included US, Singapore, Germany, UK, in addition to India.
We also continued to expand the database on our platform with details of over 3.0
million global entities available on the platform as of the year end, a 40% increase from
last year. One of the key focus areas this year was increasing the regulatory data on our
platform. In line with the customer demand, we have increased the coverage of private
company financials and cap tables on the platform multifold. Today we track private
company financials in over 20 countries and private company captables in over 15
countries. We launched a Legal Entities database featuring millions of legal entities
across multiple countries as of the end of December 2023 to help investors to screen
through legal entities registered in various countries, particularly the late stage
private market investors. We believe this will also help increase our pace of customer
acquisition in customer segments like private equity funds and investment banks.
We also invested in several sales & marketing initiatives this year to expand our
customer base. One of the key initiatives was the formation of specialized business
development teams for segments like universities, private equity firms, and startups. This
approach has shown very good initial success, as different customer segments, although
served by the same platform, have distinct use cases and workflows. Another key initiative
we launched was "Tracxn Lite", which allows users to access nearly all features
of the Tracxn platform simply by signing up with their official email ID. This aims to
showcase the platform's value proposition and drive product-led growth. We saw a very
strong response to this launch with over 15,000 sign-ups in just the first 3 months of the
launch and the monthly active users crossing 7,000. Additionally, we have also been
focusing on customer expansion initiatives. The number of users added in Q4FY24 was an
all-time high in addition to the account additions being at an all-time high in the same
quarter.
Generative AI has emerged as a transformative technology, gaining widespread traction
and attention. At Tracxn, we have also been actively leveraging Generative AI across
various functions - including data production across modules and improving data accuracy.
We are also exploring Gen AI capabilities in our GTM funnel for reach outs, content
writing, automation of day-to-day tasks etc. The initial results have been very promising
and are helping us to reduce manual tasks, drive efficiency and increase the throughput of
data production. We continue to explore additional avenues for leveraging this innovative
technology.
India has long been recognized as a global hub for back-office operations, supporting
various large data companies. We believe it's time to elevate this role from being just a
support center to becoming a leader in the global data industry. Our aim is to build a
world-class, large-scale global data platform out of India, leveraging the country's vast
talent pool, technological expertise, and deep understanding of diverse markets.
As we look forward to another year of growth and progress, we would like to thank our
shareholders for their continued support and confidence in our vision.
If you have any questions, please write to us at investor.relations@tracxn.com.
Sincerely,
Neha Singh
CHAIRPERSON AND MANAGING DIRECTOR
Abhishek Goyal
VICE-CHAIRMAN AND EXECUTIVE DIRECTOR.