Tracxn Technologies: Navigating Growth in Private Markets Amidst Strategic Investments

Tracxn Technologies Limited, a prominent data and software platform for global private markets, recently unveiled its Q2 FY26 financial results, painting a picture of strategic investments aimed at long-term growth. While the headline revenue growth for the first half of the fiscal year remained modest at 1% year-on-year, the underlying operational metrics showcased significant expansion in customer acquisition and user engagement. Revenue from operations for Q2 FY26 stood at INR 21.2 crore, with a total income of INR 22.5 crore. For H1 FY26, these figures were INR 42.4 crore and INR 45.4 crore, respectively. The company's focus on volume growth is evident, with customer accounts soaring by 41% year-on-year to 2,143 and the user base expanding by 44% to 5,914, marking the highest quarterly user additions.

Despite the robust volume growth, profitability metrics for the quarter reflected the ongoing investments. The reported EBITDA for Q2 FY26 was negative INR 0.6 crore (-3%), and for H1 FY26, it was negative INR 0.8 crore (-2%). However, management clarified that these figures include non-cash ESOP expenses. Excluding these, the adjusted EBITDA for H1 FY26 turned positive at INR 0.7 crore, and Profit After Tax (PAT) stood at INR 3 crore. The company maintained positive free cash flow, with INR 1.6 crore generated in H1 FY26, and cash and cash equivalents increasing by 7% year-on-year to over INR 90 crore, even after accounting for a share buyback. This indicates a disciplined approach to capital allocation, balancing growth investments with financial prudence.

Financial Snapshot: Q2 FY26 & H1 FY26 Performance (INR Crore)

Strategic Initiatives Driving Future Growth

Tracxn is aggressively pursuing several growth initiatives. A significant focus is on expanding its India Business Unit (BU) by augmenting datasets, particularly revenue and financial data of private companies. These enhanced datasets, expected to go live in Q3 FY26, are crucial for Investment Banking and Private Equity segments and are anticipated to accelerate customer acquisition, revenue growth, and market share. This move also aims to open doors to newer customer segments like the debt market.

Internationally, Tracxn has forged a key distribution partnership with TMX Datalinx in North America. This collaboration is designed to leverage TMX Group's entrenched network within financial institutions, broadening Tracxn's reach and accelerating revenue growth in the region. The company is also investing in adding more datasets for international markets, including revenue estimates and valuation benchmarks for private companies.

Another core strategy involves expanding its leads funnel through organic search traffic and the Tracxn Lite platform. Tracxn Lite, launched over 1.5 years ago, serves as a product-led growth engine, generating over 2 lakh sign-ups and significantly boosting the sales acquisition pipeline. The number of organic sign-ups has increased by 1.5X, and upgrade requests have risen, demonstrating the effectiveness of this low-cost customer acquisition model.

Specialized Teams and Data Coverage Expansion

Tracxn has deployed specialized vertical sales teams targeting distinct customer segments such as Universities, Startups, Accelerators & Incubators, Investment Banks, and Corporate Sales. These teams have shown promising results; for instance, the Universities segment saw customer count nearly double and revenue grow by ~70% in Q2 FY26 year-on-year. Similarly, international accounts in the Investment Banks segment doubled on a YoY basis, and corporate sales accounts also doubled in Q2 FY26. The company plans to replicate this successful playbook across other key international geographies.

Furthermore, Tracxn is significantly increasing its regulatory data coverage. It now covers private company financials across 20+ countries, with 1.6 million+ companies having revenue data and 3.8 million+ with detailed financials. Private company captables coverage has expanded to 349K+ companies across 15+ countries. A legal entities database now covers ~65 million entities across key geographies. This deeper data coverage, including loans, charges, patents, and legal cases, is vital for due diligence and KYC, enhancing penetration in existing and new customer segments.

Efficiency through AI and Future Outlook

Leveraging GenAI in data production has been a game-changer for Tracxn. In 2024, data coverage expanded by 5X while the data production team headcount reduced by 10%. In the first nine months of 2025, coverage multiplied by 2.5X with a further 20% optimization in headcount. This demonstrates the strong testament to automation and intelligence in data production, enabling efficient scaling. The company expects continued optimization and accelerated throughput from its systems.

Tracxn Technologies is strategically positioning itself for sustained growth by investing in data expansion, international partnerships, and specialized sales approaches. While the current financial results reflect these investments, the management is confident that these initiatives will translate into accelerated revenue growth and improved profitability in the coming quarters. The focus remains on building a global platform for private market intelligence, leveraging its cost advantages from India-based operations and a robust technology platform.