0.50.1 Operator: Good evening, ladies and gentlemen. Thanks for joining us today on the fourth quarter FY26 earnings call of Tracxn Technologies Limited.

On behalf of Systematix, I would like to thank the management of Tracxn for giving us the opportunity to host this earnings call. Today on the call, we have with us Miss Neha Singh, Co-Founder, Chairperson and Managing Director, Mr.

Abhishek Goyal, Co-Founder, Vice Chairman and Executive Director, and Mr. Prashant Chandra, Chief Financial Officer.

I would now like to hand over the call to Neha to give her opening remarks and take us through the PPT, and after that we will open it up for Q&A. Please use the raise hand option to ask the question or you can also submit your questions in the Q&A box at the bottom of your screen.

Thanks, and with that, over to you, Neha.

Thanks a lot, Sidharth.

Yeah.

A warm welcome to everyone. Yeah.

Thank you, everyone, for joining us today for the earnings call for the fourth quarter of financial year '26. We are excited to present our results for this quarter.

Similar to the previous time, in terms of format, we would like to run through a short presentation covering the key highlights of this period for about 15 to 20 minutes, and then we'll follow it up with a Q&A session. A quick recap on our business for those who are joining us for the first time.

Tracxn is a data and a software platform for global private markets. If you look at the public market, it has created multiple large data companies, a lot of which are profitable, cash-rich companies.

As private market is becoming large and important, it will also create similar platforms. In this space, we are building a global platform in this space.

If you look at our customer base, it includes venture capital funds, private equity fund, investment banks, as well as M&A and innovation teams of large Fortune 500 corporations. Also, it's a global platform, right?

More than half of our revenue is international with customers to over 50 countries. I would like to begin by summarizing the financial year of Q4 FY26 and the FY26 the overall year.

Revenue from operations was 20.5 crore for Q4 and 84 crore for FY26. On profitability, EBITDA was negative 6.6 crores for FY26 and PAT was marginally negative of 0.6 crores for FY26.

Please note that this includes all the non-cash expenses as well, primarily ESOP charge, which we'll cover the adjusted view in the next slide. By segment, India grew by 4.7 crores year-on-year to 38.2 crore, while the international was down 5 crore to 45.8 crore.

Customer accounts grew by 19% on a year-on-year basis to 2,289. Volume growth continues at a good pace.

Cash and cash equivalents stood at 89.2 crores. Please note that this is net of the buyback that was completed in H1 FY26.

On this slide, we have provided the year-on-year and historical numbers for reference. We talked about EBITDA and PAT in the previous slide.

Please note that those numbers included the non-cash expense, primarily ESOP expense. Excluding this, the non-cash expense, the adjusted EBITDA was negative 3.5 crores for FY26 and adjusted PAT was positive 2.5 crore for FY26.

Another metric that we'd like to share is what portion of the incremental revenue goes into bottom line. In FY26, we did not see margin expansion because we were investing in growth.

However, if you see from the history, when growth accelerates, margin improves very quickly, right? Historically, we have converted as high as 80% of the incremental revenue into EBITDA.

Once the growth reaccelerates, we expect this pattern to repeat, driving non-linear EBITDA expansion. Coming to expenses, our total expense for FY26 was 90.7 crores, which is an 8% increase on a year-on-year basis.

On the right-hand side, we have given the FY26 expense breakup across the key components, which are the same as in the previous quarters. First, bulk of our expense is team costs, which accounts for about 88% of the total expense in FY26.

Worth noting that our entire team is in-house, no outsource or contract workforce. The second-largest item is the cloud hosting cost at 3.1% of the total expense as we do a lot of data processing and analytics.

This was followed by rental expense, right? Another point worth noting is that we do not have a large paid marketing line item, neither digital nor offline, typically required for customer acquisition, because being a data company, we are able to produce a lot of content in-house which generates organic traffic and lets us acquire leads without significant marketing spend.

Coming to the volume growth, both customer accounts and users continue to increase at a healthy pace. We closed March '26 at 2,289 accounts, which is a 19% growth on a year-on-year basis.

The number of users was 6,227 users, which is a 23% growth on a year-on-year basis. We continue to acquire customers at a fairly good pace.

Moving to some of the other financial metrics, free cash flow for FY26 was negative 3 crores. Cash and cash equivalents stood at 89.2 crores.

Please note that this is net of the money utilized for buyback, which was completed in the first half of FY26. Moving to more details on our customer base, starting with the split of type.

At the end of FY26, 80 sorry, 49% of accounts were from the investment industry. This includes private equity investors like VC funds, PE funds, investment banks, family offices, accelerators, and incubators, etc.

46% were corporates, primarily corporate development teams, M&A teams, innovation teams, strategy and sales teams, consulting teams, etc. The remaining were others, including educational institutes, government agencies, and others.

We continue to have a healthy split across the investment ecosystem as well as corporates. This slide gives basically an expanded summary of the titles within the investment ecosystem and corporates that we work with.

This gives us a large addressable market to tap into. As you can see, we cut across dozens of customer segments, which is why we've been able to build a vertical specialist team for each, a playbook that's working, and we'll cover that in the subsequent slides.

In terms of geographical split, 55 55% of FY26 revenue was from outside India. Our customers span over 50 countries.

Top five markets by customer accounts are India, US, UK, Singapore, and Germany. A quick word on the broader market environment.

In terms of overall market activity, we are seeing improvements in dollars invested, but, having said that, deal volume continues to remain low at nearly a 10-year low, both in India as well as internationally. In late stage, you see a similar trend.

Coming to the global M&A market, the rebound here is strong. So 20 2026 YTD continues with very strong momentum.

The current run rate suggests that 2026 would actually become the second-highest year after the peak of 2021, both in terms of global M&A deal value as well as IB advisory fee. Moving on from the financials, I'd like to walk through some of the key highlights from Q4 and FY26, starting with India and international growth.

Focusing on the India revenue, it continues to grow well for us. Over the last 2 years, revenue from India has compounded at 16% CAGR, with the customer accounts growing at 48% CAGR.

In Q4 FY26, revenue from India grew at 15% on a year-on-year basis. Most notably, the growth accelerated meaningfully in Q4.

As we can see on the right, the Q-on-Q revenue growth rate came at about 5.1%, which annualizes to about 22%, well above the pace that we had seen on the earlier quarters. The first step-up in growth came after we launched the vertical teams, and the more recent step-up has come from the additional datasets we have added, which were prioritized by the different vertical teams, right?

This has also helped to cement our market leadership in the datasets that's most relevant to our evolving customer mix. Talking about the specific datasets that got launched primarily in the second half of this financial year.

One big launch was around private company financials. This was one of the top asked features by our customer segments, including investment banking, private equity.

Within the last 1 year, we've increased the coverage by over 10x to make it best-in-class, right? We have wider coverage of financials of Indian companies more than any other platform in India or globally.

There are a few other items listed on this slide that you can go through in more details. There were also some BU-specific launches as well.

For instance, for banks, we launched legal entity report with risk indicators needed by them for issuing loans, on-boarding companies as vendors, etc. We added corporate tree structures for more than 60,000 entities, augmented the people database to have more than 2.6 million directors across India.

The other segment was for the sales segment. We extended the pincode data to now have 2.7 million entities, and augmented the key people and CXO data as well.

Because of these dataset launches, you see that the growth rate has increased in Q4, and we expect that to continue or accelerate in FY27 as well. Now turning to the international.

The playbook that has worked in India, vertical teams and augmented team, is now being rolled out in the international geographies as well. Once these become live, we expect the growth rates to improve, which should bring back the overall growth rate to be better.

On the dataset expansion, we are aggressively scaling our datasets and offering for the international customer segments. Some of the key developments include, for instance, in UK, the private company financials expanded to more than 4.6 million entities, which is a 14 In US, the company coverage increased by 45%, transactions grew by 5x to 1.2 million, head count data now span more than 850,000 companies, which is 8x in 2 years.

In other geos, we've launched financial reports, including Germany, Singapore, expanded financials to over 20 countries, and cap tables to over 15 countries. Looking ahead, we have a good pipeline in the coming quarters, including revenue, valuation, CXO datasets in US, and head count data for Europe.

Right. To summarize, we expect that the India growth should accelerate further following the launches that we had done in Q3 and Q4.

On the international front, we expect rebound to play out from Q1 onwards. Moving on to our next initiative, which is scaling our sales and marketing teams.

One of the key initiatives is scaling our GTM teams, primarily across the sales teams. As you can see, our GTM team has grown both in terms of absolute size as well as a percentage of the overall head count.

Sales and marketing now accounts for nearly 30% of the total head count, which is up from 23% in FY25. A meaningful shift towards sales-led growth.

At 30%, we are bringing the sales and marketing intensity closer to the mid-range of the peer benchmarks of B2B information services company, and we expect this ratio to continue to scale a little bit more as the sales team grow in size. Building on this momentum, now that the vertical sales playbook is working and our outbound conversions have improved following our dataset augmentations, we are scaling our sales team further.

We had about 34 closing sales team as of end of December '25, and we plan to nearly double this to 60 at the end of this calendar year, which is December '26. This include teams serving India as well as international geographies, and the India-based teams which are essentially doing sales for the international geographies.

Additionally, our sales partnership, for example, with TMX, will help us penetrate enterprise accounts. Right?

We expect this expansion to drive meaningful growth in the new customer acquisition. Moving on to the next initiative, our specialized vertical teams, right?

These are teams, if you remember, we had set up across the key customer segments, and we continue to see very good results across these segments. One segment that's growing well for us is, after we have launched our vertical team for it is that of investment banks.

In FY26, the India IB revenue grew by nearly 20% on a year-on-year basis, while the India accounts grew by over 40% year-on-year. We have been gaining market share with logo penetration growing on a month-on-month basis, and internationally, the accounts grew by over 35% on a year-on-year basis.

Another segment that is showing strong traction is corporate sales, which is a specialized team focused on corporate users for lead generation, market analysis, comps, business development mandates, etc. In FY26, accounts overall grew by 35% on a year-on-year basis.

In India, the accounts grew by 45%, and the revenue grew by nearly 30% on a year-on-year basis. In addition, we have vertical teams across other segments, including universities.

In FY26, India customer accounts grew by over 55%, with the revenue up over 60% year-on-year. We are now working with many top logos, including IIM, IITs, ISB, XLRI, and others.

Five out of the top six IIMs are our customers. We've also been able to include Tracxn the coursework of many of the top universities like IIMs and ISB, which is building a long-term moat for us.

Startups is another segment where we continue to see high volumes of inbound. In FY26, India grew by over 45%, with the revenue growing by over 20%.

For accelerators and incubators, we're bringing in grants data to the platform, which is helping sort of incubator portfolio companies access government funding and other support. Right.

To summarize, the playbook of vertical teams by customer segment continues to work well for us. Moving on to the next initiative, which is a new one, which is AI-native access to Tracxn data.

A lot of our paid customers had been asking us how they can access Tracxn data in their AI-native workflows, and we also see this as a new distribution channel. In this regard, we have launched two things.

One is we have launched Tracxn connector for Claude, right? Paid users can now access reliable, real-time company intelligence from Tracxn's proprietary database directly within their Claude and their AI workflows.

Note, this was launched after the close of FY26, this isn't reflecting the year's numbers as yet. Second, coming soon on the platform itself is an AI chat-based assistant for data querying along with more complex tasks like company due diligence, competitive landscaping, market analysis, right?

This is currently in private beta and getting launch very soon. Together, this will make our data significantly more accessible within customers' AI-native workflows, enabling us to embed more deeply within the customer workflows and over time become a meaningful revenue segment as well for us.

Moving on to the next initiative, which is expanding the regulatory coverage. Our coverage of regulatory data on private companies across geographies continue to expand rapidly.

Starting with company financials, we've grown the coverage by 9x in slightly over a year. We now have 2.8 million companies with revenue data and 6.7 million companies with detailed financials across over 20 countries.

Next is cap tables. Investor use it to track shareholding, valuations, price history of private companies.

We've grown the coverage by nearly 11x in a little over 2 years, now tracking over seven 770,000 companies across over 15 countries. Another example is our legal entity database, which was launched 3 years ago.

Today, we cover over 66 million entities across markets, including US, UK, Japan, India, Australia, and Brazil. Since most of the regulatory data anchors to legal entities, we continue to augment datasets, including loans and charges data, patent data, legal case and trademark, and more.

This helps us sort of deepen penetration both new as well as existing customers. One point to note across all this is that we've been able to add these datasets at this pace without significant increase in the head count, right, which is a strong testament to the level of automation and intelligence that we've been able to build in our infrastructure, which enables us to scale sort of these very efficiently.

Moving on to some of the other key highlights for PLG and customer acquisition. First, organic search traffic.

We continue to see high and increasing volumes of organic traffic. In FY26, this drove 26.2 million organic visits, which is nearly 3x in over 3 years.

The top five countries by traffic were India, US, UK, Canada, and Germany. Second is Tracxn Lite.

We had launched this for product-led growth to drive platform awareness among our potential customers. Users get access to full platform with usage limits.

In 3 years since launch, we have 285,000 signups. This helps us bring a very strong acquisition pipeline through organic signups, users hitting credit limits and upgrade requests, demos, and more.

Another initiative that we have mentioned about is press mentions. In FY26, we had over 4,000 press mentions, which is a 40% increase on a year-on-year basis.

We had partnerships with funds and prominent media outlets, including Kalaari CXO report, ET Top SoNICORN report, ET Startup Awards, the Bengaluru Innovation Report 2025, and more. We've also expanded internationally with brand mentions across media outlets, including Forbes, Reuters, Singapore Business Review, and others.

All of these helps to build our brand as a data company and helps in sales conversions. To summarize some of the key growth initiatives that you can expect to see in FY27, right?

On the India front, last quarter, we had mentioned that we expect that the growth should improve, which is what has happened in Q4, right? We have cemented our lead in the private market data, which is now also best-in-class in financial coverage, right, as well.

We are gaining share in newer segments like corporate sales, banks, financial institutions on the back of the augmented offerings that we have added. The impact that you saw on Q4 Q-on-Q growth rate increasing to over 5%, which annualizes to more than 20%, is primarily due to the dataset augmentations that were done in Q3 and Q4.

Additionally, another thing that we are doing in the coming year is scaling our sales teams, right? Vertical team is working well for us and sales conversions have improved.

We are doubling on our closing sales team in India. We'll grow this from a team of about 25 at the end of December to about 40 at the end of this calendar year.

As a result of both of these, which is dataset launches as well as doubling for sales team, you can expect that the growth should continue to accelerate from here. On the international front, major dataset investments are underway, including valuations, revenue data, especially in the US, and CXO data in US and Europe.

Some of it is launched, but there are multiple other launches also planned for FY27. In parallel, we are also doubling our closing sales team here, which is from less than 10 people to about 25 people.

This will also be complemented by the partnerships, and we expect the uptick to start happening from Q1 onwards. The third is AI-native access to Tracxn data, right?

We see this as a new distribution channel for investors to use and consume our data. In this regard, we have launched MCP connector to Claude.

Second, we have launched an AI assistant on the Tracxn platform and are also doing partnerships with AI-native platforms. We expect that this segment should start contributing to revenue from this financial year onwards.

On the regulatory data front, we continue to deepen our coverage across financials, cap tables, transactions, LP data, and other private market datasets. Right?

Overall, we have a strong set of growth initiatives in place. We expect FY27 to show the impact of these investments, both in terms of improved growth and expanded market share across the key segments.

In the subsequent slides, we have also added some of the other key metrics, right? This cover most of the updates that we had, and you can probably refer to some of the other metrics in detail later.

With that, I'll pause and I'll pass it back to Sidharth for Q&A.

Thank you, Neha. We can move on to the Q&A session.

Participants can raise their hands or write down the question in the Q&A box at the bottom of your screen. Once we call out your name, you can unmute yourself and ask your question.

We will wait for a minute now. Ritika, do we have a first question?

Over to you, Jignesh, and Ritika will take over from here. Yeah.

Yeah. Jignesh, you have your question?

Hello? Are you hearing?

Yeah.

Yeah. Hi, Sidharth.

Hello? Hello?

Yes, sir, we can hear you. You can start your question.

Yeah. Neha, congratulations, first of all.

You are trying your best, but we want to know about your international penetration or your efforts. Can you throw some light regarding the international market?

Right, right. Yeah.

For sure. Just to actually, in the context of both India and international, one of the things that is that is worked very well for in the India region, and then we are replicating that for the international region is basically, prioritizing some of the customer segments.

If you see, VC as a segment, which was probably like one part of our key segment, maybe a couple of years back in both in India and international, so that segment was probably most, impacted after the market slowdown which has happened. In India, what has actually worked well for us is that, the other segments, so, though VC actually still flattish, the other segment are actually growing well for us because we were able to expand our offering in some of the other segments, primarily investment banking or corporate sales in some of the other segments, right?

We were able to augment our offering to basically also have, have our penetration deeper into these segments, right? If you see, these are the segments that are actually growing well for us, which actually takes the overall, India growth rate also high, right?

This is the similar thing that we're also replicating in in the international market, which is, the the key segments which is investment banking, private equity, and corporate sales, I would say, right, augmenting the offering, in addition to what a typical private market investor needed, augmenting our, offering to also have higher conversions in this segment, right? Once basically these start growing, then we expect that the overall international growth rate should also improve.

Yes, Neha, but according to your latest PPT, UK financial data expand around 4.6 million, right? US company coverage around YoY 45%, and funding transaction grow also you have mentioned 5x to 1.2 million, and US head count count data expand also at 850k companies.

From all this point, how, as India, how you will start to revenue generate at break-even point or something as or still there is a pinching regarding this EBITDA level for or what or something?

Right. For instance, in India, for instance, a couple of datasets that were sort of requested a lot by these customer segment, one was just a private company financials data, right?

That is one thing for instance that we augmented. We actually sort of increased the coverage within probably a couple of quarters to actually make it best-in-class now in India, right?

The other thing is so for instance in US, the datasets that is getting prioritized is basically your actual revenues, revenue estimate, and valuation data, right? That is also coming live soon, right?

These are the similar the datasets that we are also augmenting in the US and UK geographies. Right, it's not just the data points that we mentioned, it also has to sort of go along with the other things that we mentioned which are in pipeline.

Once that sort of starts getting live, then we should start seeing more impact in the numbers as well.

Okay. Thank you, Neha.

I will come later on to join.

Hi management, am I audible?

Yes. Hi, Praneeth.

Yes, you're audible.

Thank you for the opportunity first. One thing I wanted to understand in terms of the IB and M&A, you mentioned that there's a turnaround likely to happen right later this year because right now the projections seem high for the full year.

Does this mean that

Hello? Praneeth, your voice is breaking.

It's not audible right now.

Really sorry. My connection got cut.

Can I speak?

Sure. Please go ahead.

Yeah. I was wondering you mentioned that IB and M&A seems to be getting back on track.

Does this mean that degrowth stopped in this international market, and can we start expecting growth from these segments, or what do you see? Because usually before the transactions happen, buying software like us or using more of it is likely lead indicator for these happening.

Do you see that happening? Can you just give some idea on that?

Yeah.

Just to add, for a few segments, for instance investment banking, we have seen some turnaround happen. We expect that the growth should increase once we launch some of those things.

Yes, on an average, I think for some of the segments, we are seeing sort of growth coming back, which includes your investment banking, your corporate sales as a segment, both internationally where we have seen growth starting to happen.

Do you think this is because of the sales people we employ or is it just because the market has started turning around?

I think two things. I think there are three phases, right?

One is your vertical sales team, which actually does very focused outbound and engagement with those customer segments. That was the phase wherein we saw first sort of improvements in the conversions and the numbers, right?

For instance, IB is live in UK, in US, those teams are live. The second is improvement in conversions we had seen when we actually augment the datasets, which is just primarily for these segments, right?

Because they were a smaller portion of our customer segment, now they're actually growing to become larger. We are also prioritizing some of the things to improve conversion.

The second uptick that we are actually seeing is once these things become live. The third thing that you'll see next year, which is basically scaling the sales team overall, right, which is just doing that.

That is planned for FY27.

As I see it, the customers are increasing and everything seems to be this thing, but the pricing, I think, is taking a lot of hit, right? Over the years, we have maintained similar revenues, but internationally also, I think our pricing is getting affected.

Do you see further degrowth in terms of our pricing, or you expect it to stabilize at this levels?

Yeah. Actually, interestingly, that's a good question.

Interestingly, our ASP has reduced, but our pricing within the customer segment is actually not reduced that much, right? To give you an example, today our ASP is about 4 lakh per account per year, which is slightly lower than 5 lakh last year, right?

The main reason is actually change in customer mix, right, not the ASP going down, right? Because there are some segments, for instance, your IB or sales which have lower ASP as compared to, say, a investor as a segment, right?

These segments are growing. It's mainly triggered by the change in mix that is happening.

Within a particular segment, if I take up like a VC or PE, it's not that the ASPs are changing a lot, right? In fact, for some of the segments like the early segments, we've also seen sort of improvement is there.

Within a segment is not changed much. It is mainly the chain mix which is sort of happening.

Got it. Apart from IB, do you see the VC turning around?

Because still, I think that's will be our distinguishing factor even though we put our sales team and everything. Their results will still be based on the market turning around because no one is going to start buying us in a down market or without transactions happening at the end of the day.

I was just wondering in that case.

Right. Currently what we are planning is actually even if the market remains like this, we should be back to our sort of your growth trajectory.

That is what we are working towards, that we want to basically reach to more than 20% sort of growth rate. Currently even if the market sort of remains the way it is, we are still building for us to be able to sort of grow because of change in customer mix and prioritizing some of the other segments, and sort of working with some of the customers like launching your AI-native sort of data consumption so that there are more avenues that people can actually use that, right?

Right now, if that improves, that's great, but right now we're not banking on that.

Got it. Did our partnerships with like TMX yield any results so far?

Like did we generate any revenues from those partnerships or they're still in the pilot stage and yet to be seen?

No, we've started generating revenues from that, right, though they're small and we expect that to increase. One of the best part about working with large players like this, and they're fairly large data platform, the largest sort of exchange in Canada having a very entrenched sort of a sales network in North America, right?

One of the best things about working with players like this is that you are also able to penetrate in the larger enterprises, right? You're also able to, because of the fact that the networks are already there, right?

They're also able to penetrate into larger enterprises. We've had discussions with that, right, and I think we are also working with some of the large sort of enterprises in doing a POC and sort of working with them to do that.

Once I think that starts once we see sort of movement on that front, then obviously that will be more interesting. Having said that, we are sort of fairly sort of excited about that.

Are we

do we have any more in the pipeline for the year in terms of partnerships?

We are working on a few, and once that closes, we'll probably also announce that.

Usually when you start with these partnerships, how long do they take for them to set in stone? Because I understand it's be a lot of back and forth and understanding the whatever it is.

How long does it take?

I think with any large player, I would say, it takes up at least 1 to 2 quarters to close the, to close and launch because obviously you're working with sort of large enterprise. Having said that, like there are a lot of sort of large ones that we have sort of known over time and we are talking.

Typically for the larger ones, it takes us anywhere between 1 to 2 quarters.

Got it. Going forward, in terms of new products, I think we've introduced new CXO datasets and all of that.

Will it be just a part of our extra modules as we keep pricing our product better, or will it be, let's say, a separate monetization strategy altogether for these?

I would say both. One is obviously this is an augmented dataset that our customers sort of get, and especially some of the customer segments which have been requesting, there we expect more conversions to happen.

The second thing is for a few of these segments, we're also adding more pricing tier. For instance, we are starting metered pricing, right?

Based on the number of usage, it's a little bit of usage-based pricing that we're also launching for these segments.

Understood. Right now, as I see it, like we also have like a probably like a la carte menu also.

We can buy individual reports and all of that on our website. What kind of individual, let's say, one-time purchases contribute to our overall revenue versus, let's say, annuity?

Can you just explain?

Yeah. No, that's a great question.

Right now, we launched that. Right now, I would say it's still single-digit percentage, but that has grown well for us.

This is anyways the data that we had, and making it available for people to buy in bunch, right, and set. It has also helped us to tap into newer segments.

For instance, the way banks, for instance, are used to working in this, right? Like whenever they want to issue a loan to like a corporate, they want to they have to do some KYC, they have to get some docs and do some checks and balances and risk assessment based on the regulatory data of these customers.

They have to, that's a necessary step which is there, right? Thanks to these launches, we have also been able to penetrate into these customer segments.

That's also one segment that we expect should grow. Right now, it's a single-digit percentage only of the overall revenue.

Do you think this can be a large contributor because it will be a much more addressable market, right? Like as a product, does this can this grow or this has this happened internationally, or what how does the strategy work with this?

Right. This is also a segment wherein you have players, in India you have players in some of the other countries.

It is very in line with what we are doing because we are anyways building our data, right? It is basically repackaging the same data that we are producing for a different customer TG, right?

For us, it is actually very sort of synergistic, right, to actually leverage that and offer to customer segment. This is also fairly large segment, right, which over time can it can become.

It may not be like the top three segment, but it can definitely be among the top five, six customer segments that might eventually happen because even if we look at sort of globally, there are companies in this space.

Understood. In terms of let's coming to our cost, let's say in terms of our ESOP expense, will it remain in the similar percentage points or is there any chance of going down in the future?

We expect that it should remain in the same similar range of what it has been. It's been fairly range-bound, right, the ESOP charge because of the way things are structured.

It should remain in the same range.

Understood. Got it.

In terms of our sales team, I think we have like large plans of getting let's say to 30%. Do you think 30% will be the peak, or do you think we'll go further than that in the next 2 years?

That's an interesting point. One of the things that we are actually doing is, if you look at the GTM team overall, which is your sales and marketing, sales support, everything, it has grown from about 23% overall of the head count to about 30%, right?

If you look at typically your enterprise SaaS companies, they range anywhere between like 25% to even 40% on the higher end, right? That is the range that we sort of also aspire that once you start having a good conversion, etc., then you have a good percentage of your head count and just basically sort of going to the market.

There we and we're also scaling the sales team, probably it's a good percentage to have firstly, and then you might see it sort of go up a few percentage points.

Do you see how long do you think it will take for them to start converting into actual sales? Because probably there'll be training and other things, right?

When do you think they'll start converting?

Typically, our sales cycle are sort of, fairly short, I would say. It's not your typical large enterprise sales cycle.

It's typically, say, once a sales person becomes productive, our sales cycle is anywhere between 1 and 1/2 months to 2 months. Typically a sales person takes, maybe like a a one or two like within a quarter they're typically in the next quarter basically they are expected to, sort of be in line with the typical closure requirements of a of a sales person.

What would that be, typical closure usually mandates for those?

It depends by the different customer segments. Each TG have particular conversion.

Typically like, for instance, we are scaling the sales team in the verticals wherein you have higher conversions. Your average is about, say, like a 15% to 20%, but in some segments, you are even having like 30% or higher conversions, right?

You're essentially scaling in those segments wherein we are already seeing good conversion percentage.

In terms of, let's say, dollar let's say rupee amounts, let's say if we were to pay 1 lakh 1 and 1/2 lakh per month to the specific salesperson, what kind of return, like in terms of revenue, will it contribute to us?

Right now, see, in our set, actually, the break-even that a sales person has is not a very long duration. It happens in a fairly limited amount of time.

What we focus on is basically, whenever you have different customer TGs, right, you have different segments, and we track basically your demo to conversion, right? What's your demo to closure percentage?

As soon as it starts crossing a particular level, then we know that we can actually double the sales team in those segments, right? It has to be backed up by obviously a little bit augmentation and offering, etc., which is sort of required.

To give you an example, right, sales is a very good segment. We already had, for instance, the private market data for the private market investors, which is also very relevant for sales team because for sales team, they actually get very targeted outbound, right?

If a logistics company wants to do outbound in D2C brands, then they are able to actually get that list of D2C brands in a very curated way that they are not able to get across any other platform, right? That is what is the value which is there.

Once we started tapping into that segment, right, it was not about just going behind that segment. It is also adding a few things, right?

For instance, one of the requests that we got from the large enterprises is that, okay, the way my sales team is divided is by pincode, right? I also need pincode data to be added to these, right?

That we were able to add in a few months. We also need sort of more contacts, right?

Who's the right person within a thing, so that we are sort of augmenting, right? You also have to do these two, three other things to then sort of increase the conversion very meaningfully, right?

I think the two steps have to be done, and once that you see that conversions crossing, then it's easier to sort of double those, right?

Got it. Let's say in terms of corporate, see, I think it's a huge opportunity, and substantial part of our revenue is coming from there.

Do we see it expanding in terms of these MNCs, specifically large corporates, let's say, most of our investment size industries are much smaller in terms of numbers compared to let's say a corporate where you can probably sell 1,000 accounts at once. Are we targeting any large accounts like these, or how do we go about that?

Yes, definitely. Right now, corporate is actually grown to more than 40% of if you look at our customer base, right?

That is a segment that we continue to sort of invest in, and when we are selling to these corporates, it includes a large corporate as well. We have a separate team to actually just sell to the enterprise corporates because obviously the amount of growth that you can have in these is much more than the other.

Yes, that is definitely a area of focus for us, and we believe that should over time become a large segment for us.

Got it. Right now, I think you mentioned that 20% we probably will go.

Do you expect that to happen during this year? Do you see India contributing most of it, or how is it going to work for this year?

Because we've had this growth for the last 4 years we wanted to do.

Yeah. India should actually, as you can see, actually at the end, the growth rate has sort of become even better, and that trajectory we expect should continue in the subsequent year because we have sort of made investments, that is working out very well, and we've seen the proof point of that, and now the next is scaling the sales team, right?

That should be fairly interesting, and we expect that growth rate to sort of accelerate. We are also working obviously in parallel to basically improve the international growth rate.

You should start seeing some impact from Q1, Q2 onwards itself. I would say the meaningful impact will also come in once we have those launches, which is probably maybe in the next couple of months, which is coming up, right?

You should see some improvement, but I think you should see sort of more improvement once we add those things in the coming months.

Do we see at least breaking even this year? Is that a possibility?

Hopefully, yes. Hopefully, it should look better.

Understood. In terms of public market also, I think we also have information through public entities, but won't adding it also make the let's say total addressable market also bigger?

I was just wondering in terms of that.

Yeah. No, that's a great question.

Obviously we see the opportunities of the private market, the corporate, sort of those are very adjacent to the dataset that we have. We are also adding public market data, and you will see that's actually getting launched this quarter itself, which is mainly for private market investors who are looking to benchmark, right, using the public market data.

That is getting added. We haven't targeted the public market investors per se.

Maybe we will have a few modules which is there, right, because this market we feel is sort of more underpenetrated as much as the public market platforms are.

Understood. Just one last question.

When did we added a few people during the year, right? When was that?

Was it during the last few quarters that we added? Because I was just wondering because we added 5.5 crores, I think, about in terms of employee expense for the year.

I was wondering was it through the end of the year or is it mostly for the sales people?

It was primarily, I would say, the last two quarters that some of these people were added.

Got it. In terms of employee expense, where do you think we can end up at in the next, let's say, 3 years?

Because I understand we've been right-sizing. Again, it's been a journey with us.

We've been reducing in some area and adding in some area. Let's say in 3 years, we want to grow at 20%, how would

Right. What we have actually mentioned is, for instance, if you look at historically, our expenses grown at single-digit percentage, right, between 5% to 10%, that's what it has grown.

Even going forward, we expect that it should probably be in the similar range, right, single-digit percentage which is there. If you look at our head count, which is probably the largest part of our expense, though we are adding sort of sales people and the other things, there's a lot of efficiency which is also happening in the data production because a lot of automation, right?

If you see we've talked about earlier that if you look at our data ops team, that has actually shrunk, last year it shrunk by about 20% in terms of that head count. Having said that, obviously we are investing in growth and we are investing in some of the other things.

You'll probably see the cost go a little bit, but in our case, it has been fairly range-bound, right? It has been typically single-digit percentage at which it has increased, and we expect that trend should probably continue.

The only reason I ask is because, see, without us growing by 10%, most our costs will also catch up usually. Even though we are at break-even, we don't grow our revenues, let's say, by at least 15% to 20%, it won't make sense because you won't end up making any money.

Just wondering in that perspective, where can we end up in let's say 3 years? Because our costs seem to be growing high, and I understand we're doing a lot of experiments right now for most part.

Could you explain what kind of more experiments will we need to do, and if those don't pan out, can you also cut down on the workforce? Because I think making money will be first priority also as a public entity.

I was wondering in terms of that.

Right. No, that's a great question.

See, we are very mindful about sort of how we are scaling and we are sort of fairly thoughtful about how we are investing across all these units. In our case actually, as soon as the growth rate sort of crosses a particular one, your margins improve fairly in a non-linear manner, right?

Your margins improve in a fairly quick manner, right? To give an example, within 1 year itself, we were able to increase our EBITDA by 15 crore in 1 year, right?

That is also sort of feasible to do. In our case, for instance, we are obviously investing in some of the engines which we believe will help drive sort of growth.

Obviously it takes some time to sort of build that out. We've been sort of fairly conscious or cognizant, I would say, in terms of cost scale up, right?

It has been sort of fairly thought through, I would say. We see that once that catches up, we should be able to increase the bottom line at a fairly faster pace.

Hopefully it should happen within the next 3 years itself.

I understand that because most of our cash reserves didn't come down and we've also been maintaining overall profitability to an extent. We didn't raise, I understand all of that.

Just wondering because PAT has been a while since we generated, at least without other income and other factors. In terms of core business profitability, I was just wondering when will it reach because despite market softness, we have not able let it be whatever it is.

Just wondering in the next 3 years where do you think we might end up at in terms of, let's say, revenues or profitability-wise of it?

Right. Yeah.

What we are sort of, as we sort of alluded to, how we're thinking about sort of the different growth engines that we are doing, and then we believe they are fairly well geared up for FY27, right, on the both the segments that we mentioned about, India and international. We are investing in that, and because of the fact that the business is very high gross margin, right, the profitability actually increases at a fairly quick way.

That we are lesser concerned about because that sort of we are sitting on a sort of good cash reserve, which is there. We did buyback also sort of in the first half of this financial year or the previous financial year, right?

There's a good cash reserve that we are building that we're sitting in, and we expect that's not so much of a concern for us.

Got it. Do you think 20% would be a conservative number, or is it a good enough, fair enough estimate?

We are gearing for sort of reaching that at the overall level soon, right?

Hi, Neha. Can you hear me?

Yes, Abhinav. Yeah.

Can hear you well.

Thanks for the chance. Great performance in India.

I wanted to understand the public market data also you are going to focus. How big of a opportunity that would be, and can it be bigger than the current opportunity as well?

Total.

Right. Got it.

Thanks a lot, Abhinav, for the question. Sort of correcting, we are adding public market data, but we're not focusing on public market investors as a segment, because obviously they require sort of more nuanced data.

Right now, few of the queries that we get from our customer segment, for instance, an investment bank, they want instant comps, right, for any company. We have a very good list of comparables, right?

For instance, if you are looking at a company in food delivery, we are able to give you sort of all the global companies in that segment, and that's for all the large private companies as well, right? This is something that we get requested a lot by the IBs or PE, right?

These are the modules that we are launching, which is using public market data to help our current customer segments that we are working with, right? That is one thing that we are working on.

For the private market investor, currently it's not so much of a focus because we believe that obviously that's a more well sort of catered-to segment, right? Currently our focus is on private market and corporates.

The reason I'm asking this is I have explored Tracxn platform for researching public companies and what their private competitors are and what they are valued. As a public investor, I feel that data is very valuable, and there is no other competitor who is providing that.

That's one reason you can even actually tie up with third party or Groww, Zerodha, and probably give that data access the way you are giving to parallel.

That is

probably we are sitting on a gold mine there. Right.

No, thanks a lot, Abhinav. That's a great suggestion.

I think we will probably look into that. We've probably sort of got some requests for that, but I'll see what can be sort of monetized in that.

Second question, like at this valuation, like we are at 300 crores valuation and we have around 100 80, 90 crores cash itself. We are at a very low valuation.

Is there any chance for doing buybacks because it's a very low valuation considering the cash flow we are generating?

Right. No, I think we also feel that, and in terms of your buyback and dividend, I think we had done a buyback last year and then we'll probably be eligible for doing another buyback soon.

Probably once that window opens up, we would be, as we have mentioned that we would want to sort of keep doing buyback because we believe that this company sort of is able to generate a lot of cash, and until we are able to give dividend obviously because we have accumulated losses, buyback is a great way to sort of have some sort of your use of cash in addition to all the investments that we are also doing. Yes, to answer your question, we would definitely consider that once we are eligible to do another one.

Also one question ahead is the way you're presenting the data, even though there are a lot of segments growing, a lot of segments falling down, the overall result looks flattish. The way we want to evaluate as a sum-of-parts method, if we can get different segments data, like IB data how it is growing through the years, the PE data how is growing through years, we might be able to evaluate differently so rather than the data looking flattish.

Sure. Thanks.

That's a good suggestion. I think we've started giving India, international, obviously, one thing because overall you don't see the impact, but actually there are a lot of things which are working and in that which are sort of growing.

You've started giving that on a consistent basis. We will also give some of these other split over time.

We've been talking about some of the segments like vertical teams consistently for the last few quarters and how they have been sort of growing and they continue to grow. Obviously we can, probably over time, we'll keep adding some of these metrics.

Nothing else from my side. Thank you.

Thanks a lot, Abhinav.

All the best.

Am I audible?

we have been, very personally, you can say, we have a high respect for you people, both of you, and you have been driving this company. Lately, we are turning very skeptical the way our investment has turned out.

Can you guide whether we have a very clear-cut path of growth looking to down the line 2, 3 years or how whether this AI would turn out our data, proprietary data, into a commodity? If you can add, that would add to our confidence.

Right. Thanks, Kalpesh, for the question.

See, coming to that, that's why we have sort of also started giving some of the splits, and there is good amount of work that is going on. In our, we see a lot of things which are working, and it's sort of we see it more predictable path for the other ones.

Obviously sometimes it takes longer. Our market, for instance, has gone through the worst, right?

To give you an example, the deal volume today, right, is at a 10-year low, right? That is obviously it's there.

Despite that, we have been able to sort of augment into some of the other segments. We've been able to change some of our customer base, customer mix, right, and been able to sort of get the growth back.

It probably takes us some time to replicate that in the other geographies, but I think for us, we believe that if you break it down into two parts, India should sort of, that growth rate should continue, right, hopefully you should see some acceleration in that, and the international, you should start seeing better in 1 to 2 quarters itself.

Am I audible, still? Am I audible, ma'am?

Yes, sir.

Yeah. The follow-up question, what I would like to ask is that, see, we want to see the cake.

Where is the cake? Actually, from last seven, eight quarters, I think we have been,

matlab,

roaming into 20 CR, 21 CR of kind of revenue. Similarly, matlab, we have seen other companies also wherein this revenue has stuck.

They have either complemented few more segments wherein the revenue can be generated. Though, matlab, are we exploring other segments to generate revenues for the company?

Yes, to answer your question, yes, we are. To give you an example, one of our key segments, I would say within private market, the VC segment was impacted, which used to be a large segment.

We have actually increased focus on some of the other segments like your corporate sales, which is a very different segment from an investment bank, from a PE or private market investor, investment bank, right? These are the segments that we have also started focusing on, which are actually growing well for us, right?

That is why you see, for instance, that the change in the mix is what you see the reason for growth in India as well, right? That's what is sort of also getting replicated.

Right, to answer your question, yes, we have actually prioritized some of the other segments, which used to be probably slower for us, but now are, because of the fact that we've also augmented our offering there, are growing well for us. We expect that those segments should grow over time as a percentage of the overall segment.

See, what I'm looking out, these are the subsets of segments. I'm talking of complementary to this data what we are doing, matlab, what we are giving to customers or clients.

Other than that, any research-based or are we going into different activities to uplift the revenue? If not segments, I'm talking of other avenues of activities what we can complement to our set of businesses.

Right. Yeah.

No, that's a great question. Yeah.

Got it. No, that's a great question.

In that respect, actually, just to answer that, there's one bucket of segment that we are actually going more deeper into, which is actually selling the data into different ways, right? To give you an example, one is your whole AI-native way, right?

For instance, we launched that you can now access Tracxn data in Claude, etc., that you're working on. We've also added a chat-based interface, which can do more agentic work, right?

Which can actually do more deeper workflow integration, and this is actually available at a different sort of pricing, right, which is not part of this subscription, but is actually a different product which is built on the similar data, right? The second the third thing that we're also doing is partnering with some of the sort of data platforms which are, sort of you can actually have Tracxn data in various other formats as well, right?

That is one another initiative which is also there, and we believe that in FY27, that should actually be a percentage of a revenue as well, right? It should start contributing in the revenue from this financial year onwards, which is basically Tracxn data, proprietary data, being accessible in your AI-native workflows across these platforms.

Okay. Any organic inorganic growths we are looking out or in the cards?

Matlab, if you cannot name it, you can just give a broad guideline.

Right, we continue to, sort of evaluate opportunities. Right now, there are a few interesting opportunities that we are probably seeing.

Doesn't look like immediate, but that's definitely some area that we continue to explore.

Thanks a lot, and good luck.

Thanks a

lot.

I'll probably take up that. Yeah.

Thanks, Neil, for that question. Actually, the segment that is impacted is the same, right, like we talked about, which is your VC as a segment, which because of the softer markets in there that we've seen impact.

That's both India and international, right? Even in India where we've been growing at a higher rate, that segment is still probably flattish for us, right?

That is the same segment that is probably getting impacted internationally, while some of the other segments, where it's growing. Because in that segment, you also see some of the funds shrinking in size, some of the funds cutting head count, right?

You also see a lot of those things which is happening in that segment, and that's the impact that we're also seeing, right? That's probably the segment that is impacted most, and the other ones, which is like the IB and the sales that we talked about, are the segments which are doing better than this.

In terms of the India, international, we have given the revenue split. I don't think we have given the accounts split, but just to have some sense, obviously the India ASP is slightly lower than your international ASP.

India ASP would be probably about half. If our average ASP is about, say, 4 lakh, India would be lesser than that, and international would be double of India.

Right. In that sense, yeah, we can probably take up the other questions as well, Ritika, together.

Sure. Yeah.

Neil, just to answer on those, Tracxn Lite is a big funnel for us. We are seeing sort of good leads from there in terms of the upgrade requests, etc., that we get.

We are also able to sort of prioritize which segments are getting most engaged with us organically, and then we can also do outbound in those segments. It also helps us find out the engaged users, go behind them, right?

That's a great funnel. There are a lot of other initiatives that we're also doing to engage with these customers, right?

The exact numbers, we don't track, but overall, in all the segments, this is a good PLG acquisition channel for us, right? In terms of the pricing trend, India, international, I think as I was mentioning, if your international ASP is essentially double of the India one, the overall ASP has changed not because the pricing is basically changing, but the customer mix is changing more about that.

Some of the segments which are probably at a lower price point, they are growing well for us, which are at a lower price point than an investor. We see that.

If you see that the ASP change on a Q-on-Q basis, that are actually sort of converging more. We expect that to be more in the range-bound sense.

Yeah. Hello, am I audible?

I have one question. In Q4 FY23, right, we had around 3,200 and something users, right, 3,227 or something.

Now we have around 6,200, right, roughly double, right, and even the dollar has appreciated, right? Let's say some of international payments are in dollar, right?

Dollar has also appreciated around 15%, 20%, right, in this 3 years. With our total revenue will be number of users into revenue per user, right?

With this calculation in this 3 years, either the revenue should have grown, the only other explanation is that let's say revenue per user has halved,

right?

Even if revenue comes with a lag, from the last 1 year, at least I'm seeing accelerated increase in the number of users, right? Even the lag should be accounted in this period, right?

That's my question.

Why

is the discrepancy? Yeah.

Right. Thanks, Matthew, for that question.

As I was mentioning, yes, the ASP, for instance, earlier per user, as you're saying, currently it's about 1 and 1/2 lakh per user per year, right, which is probably used to be like about 2 2 and 1/2 per user per year, right? There has been change in that.

That has been primarily driven by the change in customer mix, right, not just the same users are getting added at a similar price point. The segments that we are prioritizing, for instance, your sales as a segment, corporates as a segment, they have a slightly lower ASP as compared to your earlier investors, right?

That is why you see that the overall growth rate is there. Having said that, I think what we see is that in the segments, in all the segments actually we are sort of growing.

If you're growing, for instance, in 20% in IB India, the number of accounts are growing at double that, right? The number of accounts are growing at 40%, right?

Whichever segment wherein we are seeing your user growth more than your account growth more than, say, like a 30%, 40%, in all those segments, we're also seeing sort of revenue growth, right? What we focus a lot is, obviously, within a particular segment, how do you sort of increase your market share over time?

Over time, what we have seen is that it's easier to grow your pricing over time.

Okay. Got it.

One more question is that is there any way that, let's say, individual investors like us, right, shareholders, we can use Tracxn Lite? I went to the website to check and I think it needed to sign up, and it's only available for organizations, right?

Or can we also sign up and just check out how it is?

Yes, Matthew, you should definitely check that out because you should be able to see what we are building and what are the new things that is getting live. You should be able to sign up.

I think you require a business email ID. There might be personal email IDs may not be allowed, but you need a organization, sort of any business ID.

I think but if you have sort of any business ID, you should be able to create. In case not, I can probably have my team also sync up, and obviously you should see the Tracxn platform so that you're also able to see what are the things happening and what are the new things that we are adding sort of every month in that.

Got it. Without business ID I can reach out to investor relationship or something and

Yes,

and

we should be able to help you with that. Got it.

Thank you. I don't have any other questions.

Thank you very much. I believe that in the interest of time, we will have to close our valuable call now.

In case you have any further questions, you can reach out to the management at investor, i-n-v-e-s-t-o-r.relations, r-e-l-a-t-i-o-n-s, @tracxn, t-r-a-x-n, t-r-a-c-x-n.com. I will now pass it on to Neha and Abhishek to give their closing remarks.

Yeah. Thank you.

Thanks a lot, Sidharth, and thanks, everyone, for joining us today. I hope you got a clear picture of our recent business update and we've been able to address some of your queries.

If you have any follow-up queries, please feel free to reach out to us. As Sidharth was mentioning, you can reach out to our team at [email protected], right, or you can reach out to us, [email protected].

Thanks again. Hope you have a good rest of the day.