Tracxn Technologies Limited (TRACXN) Earnings Call Transcript

So good evening, ladies and gentlemen. Thanks for joining us today on the Q1 FY '26 earnings call of Tracxn Technologies Limited. On behalf of Systematix, so me, Siddharth Agarwal and Ambrish Shah, we would like to thank the management of Tracxn for giving us this opportunity to host this earnings call. Today, we have on call with us Ms. Neha Singh, Co-Founder, Chairperson and Managing Director; Mr. Abhishek Goel, 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 the opening remarks and take us through the PPT. And after that, we will open it up for the Q&A session. [Operator Instructions] Thanks. And with that, over to you, Neha.

Thanks. Devanshi. A warm welcome to everyone. Thanks so much for joining us today for our earnings call for the first quarter of financial year FY '26. We are very excited to present the results for this quarter. In terms of format, we would like to run through a short presentation, and I will share across some highlights for this period and also give some commentary along right, and then we'll follow it up with a Q&A session. And please request you to go through the standard disclaimers for this presentation. A quick recap on our business. Tracxn is a data and software platform for the global private markets. If you look at the public market, it has multiple large companies, many of which are profitable and cash-rich companies. As private markets are becoming large and important, it will also create platforms like these and can be -- and we are building a global platform in this space. Our customers include venture capital funds, private equity funds, investment banks as well as M&A teams and innovation teams of large Fortune 500 corporations. Also, in terms of data, it's a global platform. So, 60% of our revenue is international, and we have customers in about 50 countries. I would like to begin by summarizing the financial performance of Q1 FY '26, right? To set the context, we have one business and one legal entity, so you'll not see terms like stand-alone or consolidated all the numbers that we talk about is for the business overall. Revenue from operations for Q1 FY '26 was INR 21.2 crores. This is a 3.2% growth on a year-on-year basis. Total income was INR 22.9 crores, which is an annualized run rate of INR 91.5 crores. Coming to profitability, EBITDA and EBITDA margin for the quarter was negative INR 0.2 crore and0.5 --0.9%, respectively. Also to add, this EBITDA includes all the noncash expense also like ESOP charge. PAT for the same period was positive INR 1.1 crores and PAT margin was 5.3%. On the cash side, the business continued to generate positive free cash flow. Free cash flow for Q1 FY '26 was INR 2.6 crore. Cash and cash equivalents stood at INR 98.6 crores. This is an increase of 22.7% on a year-on-year basis or an increase of INR 18.2 crores in absolute terms on a year-on-year basis, right? So that's a fairly large increase. Coming to some of the other key metrics of the business. Our customers account continue to grow at a very good pace. Our number of active customers accounts reached 2,030 at the end of Q1 FY '26, which is a 43.7% increase on a year-on-year basis. Deferred revenue for Q1 was INR 37.9 crore, which is a growth of 6% on a year-on-year basis. In the subsequent slides, I'll be covering each of the metrics that we talked about in more detail, starting with revenue. Revenue from operations is essentially revenue from platform subscriptions. Bulk of the revenue is subscription based, so it's a fairly high-quality revenue. Also, please note this is accrued revenue. So though we do prepaid billing and collections like most of the financial data platforms you may have used, we only recognize revenue for the time duration falling within the reporting period for which the service was made available. As discussed, revenue from operations in Q1 was INR 21.2 crores and total income was nearly INR 23 crores. We have also added historical data for the last financial year for reference here. Coming to profitability, we continue to have profitable operations. EBITDA for Q1 was negative INR 0.2 crore. Please note, this also includes a noncash expense. So if we exclude the noncash expense, the EBITDA was positive INR 0.4 crores for Q1. PAT for Q1 was INR 1.1 crore. If we exclude the noncash expense, the adjusted PAT is INR 2 crores. Another metric that we track is basically the incremental revenue going into bottom line. In FY '21 and '22, this metric was close to 80%. In FY '23 and '24, these was 31% and 43%, respectively. In FY '25 and Q1 of FY '26, the incremental revenue was offset by the increase in cost as we are aggressively investing across various growth initiatives. Just a point to note here that despite these investments in growth, we continue to have profitable operations as well as generate free cash flow during this period. Coming to expense, our total expense for Q1 was INR 21.4 crores, which is a 6% year-on-year increase. On the right-hand side, we have given the expense breakup across the key components. And just to summarize, it's the same as what you would have previously seen, right? First, bulk of our expense is team cost. In Q1, this accounted for 88% of the total expense. This has been almost in the same range across the last 4 financial years. And also please note that all our team is in-house, so there is no outsourced or contract workforce. The second largest item is cloud hosting, which accounted for 2.7% of the total expense as we do a lot of data processing and analytics. This is followed by the rental expense. Some interesting points to note here is that we do not have a large paid marketing expense item because we do not have a large paid marketing spend, neither digital marketing nor offline base typically required for customer acquisition. The reason for this is that because we are a data company, we are able to use a lot of content that we have and hence, are able to generate a lot of organic traffic. So we are able to acquire leads fairly efficiently without significant expense. Another interesting aspect that you see across the last few financial year from FY '21 to the current quarter. If you see during this period, the headcount increased only by 4%, right? So, this was 624 4 years back to 650 at the end of the last quarter. The total expense during this period increased by 40%, right? But the revenue in this period has nearly doubled, right? So, it is great to see though the revenue has doubled, the headcount only increased by 4% in the same period, right? So, this is a great testament to the operating leverage of the business. Moving to our volume growth in terms of customer accounts and users. We continue to see this increase at a fairly high pace. We closed June '25 at 2,030 accounts, which is a 44% increase on a year-on-year basis. The number of users were 5,376, which is a 38% increase on a year-on-year basis. So, we continue to acquire more customers at a fairly aggressive pace. Moving on to some of the other financial metrics. The company generated positive free cash flow of INR 2.6 crores in Q1 FY '26. Cash and cash equivalents stood at INR 98.6 crores, which is a healthy increase of INR 18.2 crore on a year-on-year basis or a 23% increase on a year-on-year basis. So, we generated positive free cash flow as well as -- add cash to the latest quarter. Moving on to some of the other details on the customer base, starting with the split of customers by type. So, if you look at the accounts at the end of Q1 FY '26, the split listed across 3 main categories is as follows: 49% of the accounts were from the investment industry. This includes private market investors such as VC funds, PE funds, investment banks, family offices, accelerators, incubators, et cetera. 47% for corporates. This includes primarily corporate development teams, M&A teams, innovation teams at these corporates, consulting companies, et cetera. The remaining were others, which includes academic institutions, government agencies and others. So, as we have mentioned previously, we continue to have a healthy spread across investment ecosystem as well as corporates, right? o essentially, we service a diverse and a rich customer base. This slide gives an expanded summary of the titles within the investment ecosystem and corporate sector that we work with. So, this gives us a very large addressable market to tap into. Coming to some of the other characteristics and metrics of the company -- of the business, 57% of the revenue for Q1 FY '26 was from outside India. These customers span over 50 countries. The top 5 markets by customer accounts are India, U.S., U.K., Singapore and Germany. So essentially, it's the similar set of geos where you have large corporates and private market investors. Similar to the previous quarter, I also wanted to talk a bit on the market. So, in terms of market activity, the private markets have been fairly slow for the last 2 years. 2023 saw a decline in the tech funding, which was down 40% globally and down 60% in India from the previous year. 2024, which is last calendar year, the dollar invested improved slightly, but it was still down 50% from the peak and the deal volume was at a 10-year low. In the first half of the current year, which is 2025, deal value looks to be improving and likely to be close to what it was about 5 years back, that is in 2020. And the deal volume will likely to be at a 10-year low. Similarly, similar was a trend in the late-stage activity. One proxy for the late-stage activity is if you look at the number of new unicorn start-ups that got created or the new private companies that got valued at over $1 billion. So, in the last 2.5 years, this has been fairly slow. The current run rate of 2025 looks lower than 2024 and likely to be one of the lowest in the last 9 years. Coming to global M&A, it has seen some signs of recovery. In 2023, M&A hit its lowest point in the last decade. 2024 was slight improvement over the previous year and 2025 looks like the continued recovery. So, the deal value is likely approaching the levels seen about 7 years ago. If you look at the IB fee, the Investment Banking Advisory fee, M&A fee had hit a similar low in 2023, which was at a 9-year low. 2024 showed a recovery and returning to levels as we had seen about 5 to 6 years back. And 2025 looks better than or broadly similar to the last year's run rate, right? So, 2024 was one of the lowest in the last 10 years and in terms of the global M&A activity, and we are seeing some recovery in this year. Coming to some of the other green shoots in the business, we do see some very positive indicators. Talking about customer account growth, you'll be excited to hear that we continue to have a very high velocity of volume growth. So, on the left-hand side, you can see the Q-on-Q trend of the total number of ending customer accounts. And on the right-hand side, you can see the total number of net new accounts that got added in each quarter. So, if you see historically, until Q3 of FY '24, right, which is about 6 quarters back, we have added an average of anywhere between 30 to 60 new accounts on a quarterly basis. This pace of volume addition started accelerating from Q4 FY '24 wherein we added 88 net new accounts, right? And it has continued to remain fairly high across the last 6 quarters, right? In fact, it increased to more than 100 net new accounts getting added for all these quarters. So, you'll be glad to see that even in the latest quarter, we are able to sort of continue the trend. So, in Q1 FY '26, it got -- we added more than 100, which is 104 accounts, net new accounts that got added. So, this accelerated pace of account addition has been due to various growth initiatives that we'll talk about in the subsequent slides. Even on the user side, we saw a very good increase this quarter. So, we added 325 net new users on a base of 5,000. And historically, we have added anywhere between 40 to 50 net new users on a quarterly basis. So that's a multifold increase. One of the recent growth initiatives that we talked about is essentially your vertical teams. And as we had mentioned previously that most of the vertical teams, which are essentially teams focused behind different customer segments. So, they were started initially in the India Geo. So, while we talk about the acceleration of the individual vertical teams later in the subsequent slides, I also wanted to share the growth that we have seen overall in the India Geo. So there, we see a very healthy revenue growth in the India Geo. Q1 FY India continued to see a good pace of expansion, increasing the number of customer accounts by nearly 60%, right? So, 58% to be exact on a year-on-year basis and the revenue grew by 15% on a year-on-year basis. So, this playbook of vertical teams or think about them as small business units, which are only about a few quarters old, is working and is working very well. So, our plan is to replicate this to other countries, and we expect similar acceleration to see in the other geos as well. Also covering in more detail the international markets, we've seen the account growth improve. In Q1 FY '26, the number of ending accounts grew by 25% on a year-on-year basis. So, though it was not as high as the India Geo where the accounts grew by 58%. However, it is higher than what it was like a year back. The account growth for the international segment was negative 5% in FY '24. From there, it has improved to positive 25% in Q1 FY '26. Most of the reason for this acceleration is due to the generic sales and marketing initiatives, primarily it is increased organic traffic as well as launch of Tracxn Lite. What has worked well in the India Geo is basically the vertical teams, which is the customer segment-wise BO teams, right? And we expect that as we are replicating that in some of the other countries, we should see similar acceleration, and which will make our overall growth rate look much better. In terms of deferred revenue, we continue to see that increase. The deferred revenue for Q1 FY '26 was INR 37.9 crores, which is a 6% increase on a year-on-year basis. Coming to platform engagement metrics, they continue to look very healthy and following the historical upward trend. If you look at the platform usage, which here in terms of number of exports and My Analyst queries, this has grown 1.9x in the last 2 years. So, engagement has grown both at the overall level as well as on a user level on an average. So, this is a very healthy trend. Apart from this, we at our end have been working -- have been heavily investing across various growth initiatives -- over the last few quarters. These span across go-to-market funnel of sales, marketing account expansion, and we continue to see very good results. Some of the key initiatives that we've been working on include expanding the leads funnel by increasing organic search traffic. Second is Tracxn Lite for driving product-led growth. Third is scaling with specialized team. Fourth is increasing coverage of regulatory data across countries as we are -- as well as expanding the types of data sets that we track. And fifth is leveraging AI data production and a few more. So, I will take a couple of minutes to give you the overview of these growth initiatives, and we are fairly excited about sharing the results that we are seeing from these. So, starting with organic search traffic. So, one of the interesting growth initiatives that we've talked about previously is scaling our organic traffic. So, this continues to be a big area of focus for us. Being a data company, we are able to use a lot of data that we own to launch large set of public pages, which generates a lot of customer traffic. For instance, if someone is searching for fintech companies in Europe or AI companies in North America, they come across our pages, and we are able to generate leads through that. So, if you look at the organic traffic that we got across all the pages in Q1 FY '26, this was 6.1 million, right? So, this is a fairly large volume. And a couple of interesting things is that one is we have been able to build a fairly large volume through this. And second is that this has been growing rapidly across the last few years. For instance, if you look at across the last 3 years, this has grown 4x. And third, we continue to work on this aggressively, and we expect it to increase even further. For instance, the current traffic annualized run rate has reached 24 million, which is higher than last years. The next interesting initiative -- growth initiative is the launch of Tracxn Lite. So we have launched Tracxn Lite last year for product-led growth to increase the awareness about the richness of the platform among potential customers. With Tracxn Lite users get access to the entire platform when they sign up, though obviously with some limitations such as restricted daily limits for profile views, exports and certain platform modules. So, this was launched about 1.5 years back. And in this much time, we have been able to -- so we have over 1.8 lakh sign-ups for Tracxn Lite, right? So this is a fairly large set of users that we've been able to sign up organically in a fairly short span of time. And the other thing is that the pace of acquisition has also been increasing on a Q-on-Q basis, right? So, another interesting aspect is that the users who sign up have also been actively engaging on the platform. The monthly active users have now crossed 32,000, right? So, this is a large set of users that are getting familiar with the platform, which helps us in building a very good acquisition pipeline as part of the users express interest in upgrade over time, right? So just to give you an update on the recent quarters in terms of metrics, if we compare Q1 FY '25 versus the latest quarter, Q1 FY '26, the number of organic sign-ups have almost doubled. Average monthly actives have tripled. Average number of users per day hitting the credit limit have also doubled. So, we have seen an increase in upgrade requests and demos, right? So, this continues to be a path to become a large acquisition channel for us. Coming to the vertical teams of the specialized team that we have set up for most of the key customer accounts, we continue to see very good results. A good example being universities that we have talked about previously. And just to summarize here, we have set up a specialized team with cumulative experience over 20 years selling to universities. So, majority of our customer segment come from top universities globally, which is also a great avenue to educate them about data platforms like ours. So initially, these teams start with new sales, wherein they are able to efficiently accelerate customer acquisition rates. Later they take up also engagement where they are able to work with the customers for increasing activation and account penetration. And eventually, they also start doing marketing initiative in their respective customer segments. So, this was one of our initial teams was set up, and it has been a little over 1.5 years since their launch, and we'll be excited to see the results. The number of customers in this segment have almost tripled in the last 12 months and the revenue for this segment has grown by 100% in the same period as compared to last year. Because of these focused teams, we are also able to do targeted outbounds and get a high potential sort of logo customers as well, right? So, we continue to add many top universities. As of June '25, 5 of the top 6 IIMs are our customers and many of the new IIMs are also getting onboarded with other top universities like IITs, among others. The other interesting thing is that we're also working towards including Tracxn in relevant courseworks such as investment banking, impact investing, venture capital and private equity courses, et cetera, across universities like IIMs, ISBs and are also working on increasing engagement such -- with activities such as on-campus onboarding sessions for all the incoming students to help them familiarize with the platform. We have also launched marketing-led initiatives such as podcast series with well-known people from the Academia who look at private markets and entrepreneurship. These help us in building relationship within that ecosystem and also drive value from our platform. So this is a good testament to the vertical team approach that is very effective. This has helped us to increase both revenue and market share in these segments and as we expand to other segments, we can see a similar boost across multiple other customer segments as well. We have also set up the specialized team for start-ups. So even though start-ups serve the -- start-ups are served by the same platform, they have slightly different use case and workflow requirements. Some of the use cases include using Tracxn for business development, fundraising, competitor analysis, market research. So, this is a very high volume of inbound that we get from, but their price point is actually slightly lower than investors. But cumulatively, this can be a sizable segment served by the same platform. So, we set up a separate go-to-market strategy for this segment, wherein we have been getting a very high and increasing volume of inbound, right? So, in addition to setting up a dedicated team, we also launched additional features for this segment. For instance, some of the recently -- launched ones include profile views, which enables founders to see which investors had viewed their company profile on the platform to help them build the pipeline for fundraising and sales outreach. Some interesting updates from this segment. In Q1 FY '26, the number of accounts have doubled on a year-on-year basis and over 50% of the revenue from this segment is from international geos. Another recently launched vertical team is accelerators and incubators. Under this initiative, we are focusing on customers across private incubators, government incubators, universities, corporate accelerators. And one of the key use cases for this segment is facilitating fundraising for their portfolios, which are able to -- which we are able to do through features like investor database, live deals, next round investors and more. So, we are seeing good initial success as the pace of acquisition has increased in just a few quarters. And interestingly, even in this, 50% of the revenue is from international customers in Q1 of FY '26. Another vertical team we had launched was investment banking. So this team sells to investment banking, both through inbound and outbound. Here, we had also augmented the data coverage as required by the customer segment, which helps us to improve conversions in this segment. In addition to increasing coverage of companies, we had also launched other things like key ratios, vCMP databases. We had also launched deeper contact database so that the segment can do more outreach as they are required by them. And we're also working on other things like building coverage of offline centers as well as IPO readiness markers, which is important for this customer segment, right? And one of the features which we have recently launched is that start-ups can mention if they are looking to hire an investment bank. So, this also helps in building a sales pipeline for the investment banks. We continue to see very good results here. So, the logo penetration in India continues to increase by 1% on a month-on-month basis. In India, the number of accounts grew by 60% and the revenue grew by 20% on a year-on-year basis. So, we've also started scaling investment bank units to key geographies internationally and are seeing good success, right, and we expect further acceleration to happen. Another vertical we have launched is the corporate sales team, so this is a specialized team that is focused on users with corporate sales focus who are typically looking to scout and analyze companies across sectors and geos for lead generation, market analysis, competitor benchmarking, business development mandates. We are also augmenting the data on the platform for this segment, example, PIN code data, CXO data as well as updating the regular contact database at a much faster pace. And here also, we are seeing very good results, and the pace of acquisition has nearly tripled since launch, and we are also seeing significant revenue acceleration. Interestingly, 50% of the revenue in this segment was from international customers in Q1 FY'26. So, based on the success that we have seen on these initial vertical teams, we had accelerated the launch of more teams and launched about 10 additional vertical teams. These are specialized teams for customer segments such as venture capital, corporate M&A team, corporate sales team, et cetera. As mentioned earlier, we believe that we have cracked a very repeatable playbook through this architecture and setting up new units should have a material impact. In all these units, we had initially started by targeting new sales, which helps us accelerate the pace of customer acquisition. And later, these teams will also move to include engagement within these segments, which will help increase retention, market share penetration and revenue growth within these segments, right? And as mentioned earlier, we have also started scaling these vertical teams to some of the other geographies internationally, and we expect this to help us bring us to our desired growth trajectory. Moving on, another interesting growth initiative that we've been working on is expanding our coverage of regulatory data of private companies across countries. This includes, for instance, a variety of information on companies across various government registries and other government databases. One of these information is, for instance, financials and cap table data sets of private companies, which are particularly in demand by certain customer segments like PE and IB. So, we have done 2 things. One is we have significantly increased the throughput of the existing data sets like financials and revenue data, leading to a manyfold increase in the coverage as well as we have launched new data sets as required by the investors for doing -- for evaluating and doing diligence on private companies. So, this has also helped us boost our sales efforts. Talking about financials in specific. Today, we track financials of private companies in over 20 countries. The number of detailed financial in the platform has increased at a fairly rapid pace. In 2023, we had increased this number by 5x on the platform. In 2024, we built on that momentum, multiplying it by a further 6x. So, this is achieving like a 30x increase in just 2 years. In the first 6 months of 2025 alone, we have also -- we have already scaled this by another 3x, right? So as of June '25, we had over 1.6 million companies with revenue data and 2.9 million companies with detailed financials available on the platform, right? So, one thing which is obviously very interesting is that we've been able to add these data sets at a rapid pace without increasing headcount [ numbers ], right? So this is again a great -- a very strong testament to the level of automation and intelligence that we've been able to build as part of our infrastructure, which enables us to scale efficiently. Coming to cap tables, cap tables are requested by investors to see the detailed shareholding valuation [ details ] as well as historical share price of private companies. Today, we track cap tables across 15 countries. In 2024, we increased the number of companies on the platform with cap tables and detailed shareholdings from 39,000 in the beginning of the year to over 300,000 by the end of the year. So, this is a huge 8x increase within 1 calendar year. In the first 6 months of the current year, that's 2025, we are further able to increase this to [ 344,000 ] companies, right? Legal entities. So we launched legal entity database about 2 years back. Legal entities help investors in screening companies registered across various countries for specific high-growth metrics like revenue threshold, growth rate, profitability, employee count. So, this database has also expanded at an amazing pace. We had 11 million entities at the end of 2023. This increased to 24 million as of June '25. Major companies that coverage includes U.S., U.K., Japan, India, Australia, Brazil. We are also seeing good customer usage with legal entity page views increasing on a Q-on-Q basis. So as highlighted earlier, we continue to focus on adding more data points for the existing entities. The recent enhancements include significant increase in the coverage of financials, cap tables, people details for these entities and other regulatory data points such as loans and charges as well as patents, right? So this helps us increase penetration in the customer segment requiring these. So I've mentioned earlier, we are building sort of deeper coverage in the data points within the regulatory data, right? So, some of the data points which are live and in pipeline includes loans and charges data, patent data, legal case data, FDA approval data, amongst others. So, these are particularly in demand for existing as well as new use cases like deeper due diligence, KYC, et cetera. And we believe these data sets will help us increase penetration within the customer segments. For instance, clinical trial data, which is crucial for health care and life sciences companies as well as health care-focused investors. Patent data offers early visibility into emerging technologies, competitive positioning and market trends, helping investors assess growth potential in corporate and corporates to shape R&D partnership and strategy. Similarly, data points such as tax compliance, filing delays, payment delays, bankruptcy filings, et cetera, are also critical for due diligence as required by investors. Another initiative that we have been aggressively working on is leveraging AI for data production. So, we have been an AI-first company and continue to harness Gen AI for key initiatives in data production. We have been able to multiply and augment our data sets while reducing the manual intervention and even shrinking headcount, which is a strong testament to our use of automation and intelligence and data production. In 2024, for instance, we expanded the coverage of key data points on our platform by over 5x, while our data production headcount actually reduced by 10%. In the first 6 months of 2025, we have further multiplied our coverage of key data points by over 2x, while in parallel, our data production team's headcount got optimized by another 20% -- so we are seeing both. On one hand, we are seeing great amount of acceleration in data production pace. And on the other hand, we are also seeing much leaner data claims to be able to do that, right? To expand further, we've been able to enhance the pace of addition with high accuracy, right? So one is we are able to -- we have increased pace of data processing in the existing systems, so reduced manual overhead and increased throughput. To give you an example, the number of companies that we've been able to process at the top of the funnel have increased by 4x. The second is that additionally, we have also expanded coverage across multiple data sets through faster processing for unstructured documents. Example, accelerated extractions of financials and company information from regulatory filings across over 20 countries. Also because of this, we have been able to launch new data sets at a much faster pace than before. To give you an example, we had to launched an area PIN code mapping for the sales team, and this got launched in under a week. So, we expect continued optimization in the data production and further acceleration in the throughput of the system, and we are excited about the possibilities with Gen AI technology and its potential to help us build data on private companies globally. Lastly, another growth initiative that we have talked about previously is press mentions. So as mentioned earlier, whenever media talks about data on private companies or start-ups or emerging technology sectors, we want them to quote data from Tracxn. So we continue to work on initiatives like launching reports with media data contributions, regular columns in some newspapers, and this has resulted in a multifold increase in the press mention that we have received across the various media outlets. In Q1, we had some prominent partnerships also under this initiative. For instance, we were the research partners for the North Star Annual Report by WeWork Labs. We were the data partners or state of operator-led startups by RTT Global and the data partner for Titan Capital for another report. So, we've also extended this initiative to other geographies to increase our coverage internationally. Our data got featured in multiple columns and our reports got coverage across various media outlets even in Southeast Asia this quarter. And we are also working on increasing our coverage in other geographies like Middle East, U.K., Australia and Germany. So, the advantage of press mention is that a lot of people discover our data for the first time through media and come to our website and generate a very high intent lead. This also helps us building a brand as a data company and also have sales conversion and helps the revenue growth. In terms of the other KPIs of the business, the first graph talks about the contract price of the invoicing amount. In Q1, this was INR 21.6 crores. The second graph talks about the entity's profile of the data, which is a proxy to the amount of data added on the platform. So today, we track 4.9 million profiles, which is an increase of 50% on a year-on-year basis. So, this covers most of the key updates on the recent period. Subsequently, there are some slides for the detailed financials, which you can go over in more details. Thanks. That's all the key items, and I'll pass it back to Devanshi for any Q&A that the group might have.

Thanks a lot, Neha, for taking this through the presentation. I'll wait for a minute there, let the question queue assemble. [Operator Instructions] I think first Saugata had raised the hand. You can unmute yourself and ask the question Saugata.

I think just a couple of questions. One is when we see the pace of growth in terms of customer addition in quarter 1 of '26, it has significantly come down versus the previous quarters. Just want to understand the reasons behind the same. Is it that the number of gross account addition was lower, or the churn was higher? And if you can give us a little more color on that?

Sure. Thanks, Saugata. So just to address that, we added -- so if you compare to just previous quarter, it looks lesser, but actually, if you compare it to a longer period of, say, like 2 years, it is actually a fairly good number. To give you an example, in the last 3 years, if we exclude the last year -- previous 3 years, we added an average of anywhere between 20 to 60 net new accounts, which got added every quarter, right? And since this started accelerating in the end of FY '25 -- like in FY '25, it got accelerated when we added more than 100 across all the quarters and we have sort of sustained that. So even in this quarter, it's more than 100. So, any number between 80 to 100 is like a good number that if we continue to add. So that's on one part. Like so this is sort of the -- even the net added is like a good number that we see. On your second part of the question, which is what has sort of changed. So the retention has not changed. In fact, like retention has improved marginally, right, in this -- in Q1, if you see and if you compare it to FY '25, so it has actually improved marginally. And so, I think it's just -- I think to summarize, I think like more than 100 or anywhere between 80 to 100 is a good number to actually continue to have.

So Neha, just so that I understand how should we look at the following ensuing quarters? Is the expectation that you guys are going to go out and add in a similar range because the understanding that at least we had is that the pace of growth of customer addition has increased, which was -- which happened in the last couple of quarters. So how should we look at FY '26 quarter-on-quarter in terms of addition? Is this something that you guys are going to sort of keep following? Or is the pace going to increase to what we have seen in quarter 4 and quarter 3 of FY '25?

Usually, what we see is Q1, Q2 are slightly slower in net addition. Q3, Q4 are stronger. Q3 is year-end for U.S. and geographies which follow Jan to December calendar. There are some budgets there, so we are able to close slightly more there, and some countries follow March calendar year ending as financial year. So there is some budget expiring there. So usually, Q3, Q4 are slightly stronger. But if you compare Q1 this year to Q1 last year, it's broadly in the same range. So, in coming quarters, we are hoping that we continue to add at least 100 to 200 accounts in each quarter. But I think my sense is Q1, Q2 is usually slower than Q3 and Q4, and that is what -- that is a similar trend we have seen in the past also.

Got it. Got it. Understood. And if we have to -- so if I look at the last 4 quarters now, you guys have been in the 21-point-something range in terms of revenues, right? So you've seen a cycle of customers getting added. And while growth comes during the year as well, when do we expect growth now to come on the revenue side? And how do we look at FY '26 and '27 from a year-on-year growth perspective?

Yes. So if you look at it, the -- see, overall growth rate might actually look -- does not -- looks a little slow now. But actually, if you look at it in pockets, we have already started to see acceleration increase. So wherever -- whichever segment wherein it has had like more than 20% volume growth, we've also had revenue growth. To give you an example, obviously, at the individual customer segment level, wherever we have had vertical teams working for a few quarters, there you have seen acceleration like IB globally grew more than 20%. India grew even faster. Corporate sales is another segment that is growing, right? And even if you look at India level overall, wherein you had most of these [ BU-wise ] specialized team set up, there it grew at 15% on a year-on-year basis right. You don't see the impact overall because you still have some impact in some parts. So that's why you don't see that overall. But going forward, what we are sort of aggressively working on is also expanding the coverage of these teams, right, to other geographies as well, right, geographies. So for instance, IB, which was initially in India, now you also have IB U.K. team separately, IB U.S. team separately set up. So, as you will see more of your customer base being covered by these teams, you should see more growth acceleration. So, I think we are already done with setting up most of these teams. And I think there are a few like geographies that we are working on. And so our sense is that from here on, you should start seeing the growth to improve.

So Neha, I think the reason why we are asking these questions is also because of the fact that the presentation does not give color in terms of cohorts, right, which is exactly you're talking about. Teams which have been set up in the last, let's say, 4 quarters, 5 quarters, how are they tracking? What has happened to the average price point per customer, right? It has obviously come down. How significantly has it come down? And what has happened to the older cohorts of customers who are higher paying, right? I think these -- we get clarity on these 3 aspects, very easy to understand the business.

Got it. So I think...

[indiscernible] on that will be helpful. And what are you guys targeting at least for '26, more so for '26 than '27 in terms of growth on an overall basis?

Right, no, I think probably last year should have been the slowest in terms of the growth, and you should see sort of that significantly improve starting from these quarters to come.

So the next question is from Mr. Praneet.

I was wondering about the pricing part of it and discounting part of it. I understand that this quarter and like the last few months, we have been growing much better at an India level rather than internationally or at least that's what [ the graph ] I remember. So can you give me a light on how the account expansion is going in terms of India and that what is the average account value and user value indifferent like domestically and internationally? And can you also give an idea, I think we mostly concentrated in the U.S. So how are we also expanding in terms of geography? And how are the account values and discounting like changing as we expand into newer, let's say, segments? Because I think we -- as you mentioned before, we started to put new cohorts of people into expand the specific niches and improve the conversion of those particular customers, right? So I was wondering how much is discounting playing a role in this particular aspect?

Yes. So just to answer that, if you look at our average ASP today by account, this is about 4.3 lakhs, which is slightly lower than INR 5.2 lakhs per account per year that we saw last year. And one of the reasons is obviously that there's a high volume of new addition, right? The customer base has grown at 44% and most of the new accounts start small. So, though the average is about 3 users per account, most of the accounts actually start with a single user, like more than 90% would start with like a single user as well, right? So that's one of the reasons. And we also had launched a vertical-wise pricing. So, for instance, for some segments like for sales and IB, which their payability is lesser than investors, we have also launched a segment-wise pricing, right? So right now, we are focusing a lot on increasing market share within the relevant customer segments. And so that is why you see the ASP in this range, right? And just coming to that, your point of how we are seeing -- how does it compare between India and international? So, India is about half of the international. So if the average is about 4.3. India would be lesser than that, right, between around 3 or so and then international would be double of that, so between INR 6 lakh to INR 7 lakh per year per account, right? So that's on the India versus U.S. And in terms of discounting, I would not say discounting, I would -- for instance, one of the things that we had launched is that segment-wise pricing. So, for some segments wherein we were able to get a lot of leads, but were, for instance, having a lower conversion there in addition to launching some of the product features and the data coverage, we have also work on pricing, right? So that has also helped us in increasing the conversions within these segments. So hopefully, that answers the question, Praneet.

I think the university part of it. You mentioned that you are also making it a part of the curriculum and doing all of this, right? So, I was wondering the university accounts, how many users do each account like of them have? And how is the user base pricing? So are you saying that each of them get the individual account in Tracxn if you onboard a university or they usually use a common public account that everyone can use? How is that particular relationship with the university and students?

Right, right. Yes. So, university is a very interesting aspect. Like if you look at it, even in the public markets, right, like you get exposed to a lot of platforms, data platforms, which are for public market investing in the universities. And these are part of the curriculum, or these are in the libraries, which is available. So, we actually took a similar strategy for the private market. So, like university is a great channel for marketing for us because a lot of our user base, if you see across investors, across corporates, corporate M&A teams actually come from the top 500 universities globally, right? So that is why this was one of the initial teams that got launched. The pricing is in university is slightly discounted to what the investor would pay. So, for an investor, if it is about even the starting -- the average is maybe higher. For a university, they pay us anywhere like around INR 6 lakhs, right, in India, maybe globally slightly different. right? And this is a similar strategy that most of the other financial data platforms also take, slightly there's education pricing that most of them have. Coming to the users. So typically, what we have is basically their entire batch will actually get access to this. And the users, we don't count it in -- so the user count that you see over here, we don't count the university students within the user count, right? Because obviously, these are differently structured ones. So there all the active students or which are part of the particular curriculum that we have signed up, they actually get access to the platform.

Understood. So at this point, my understanding is right, the most -- the highest value and highest margin probably would be the investors, then it would be the IB and new verticals, that would be the universities because it's basically activation for the future growth. Is that a right understanding?

Absolutely.

Got it. So, I was wondering, you mentioned that you do not do any digital marketing or any of those marketing efforts, right? If an organic results have been yielding better results and if you see also, they're getting good results. I was wondering like how much ideally type with this -- how much of this organic marketing cost? And like I understand that you have different groups of cost of people in your particular company where they're doing different channel activation and information production and all of that. Could you give us a perspective on how AI has transformed each part of the business? And what could -- can you actually assign, let's say, a value, let's say, a rupee value to this particular integration of AI? And can you also assign a value of the marketing saving or marketing spend that we have done using our internal -- particular internal staff?

Sure, yes. So to answer that question, the first part is basically your marketing. So typically, in a lot of tech companies, you will actually see this as a large line item. In fact, like all the brand companies as well, marketing is a large item, and it also scales as you acquire new customers, right, because there's a customer acquisition cost, which is there for all the new customers that you acquire. So interestingly, we didn't choose that because that actually scale -- that can potentially scale also as your customer base increases. Because we are a data company, we are able to use a lot of the data that we anyways have to get customers. So, to give you an example, we have a lot of public pages. So for instance, if you are searching for fintech companies in Singapore or AI companies in U.S., you come across our pages, right? That is free traffic for us, free inbound for us. And across all our pages, we today get an annualized run rate of 24 million visitors. So that's a very large funnel that we've been able to sort of build through the data, which is there, right? In terms of the cost, the cost is actually very minimal because it's more of a tech-enabled thing, right? Like the data is already there that is produced for the customers and a part of it is actually sort of visible as people are searching for that. So the cost for maintaining that, it's mainly the tech development cost that's fairly limited, right, that we are able to use to get a large set of users, right? So that is on your marketing part. The second part of your question was around AI and what is the impact that we have seen across the business units? So, AI is obviously something that we have been aggressively working on. And so just to give you in terms of -- so there are 2 benefits to that. So, one is we have been able to multiply our data sets, right? To give you an example, like we have -- we increased the key data point by 5x in last calendar year 2025. This year, it has already more than 2x, right? If you look at the number of financials that increased by more than 8x -- sorry, 30x in the last 2 years, right? So that's a huge magnitude of increase. So, one is we've been able to increase the throughput, right, across all our data units. The second is we have been able to launch new data sets at a much faster pace. So, to give you an example, PIN code data that got launched in under a week, right? And on the other hand, the one thing which is actually on the expense item is we have been able to do this with much leaner team, right? So while we are able to increase the throughput, the headcount of the data team has actually been shrinking. To give you an example, in 2024, the data team shrank by 10%, right? And in the first half of 2025, it's already shrank by 20% additionally, right? So that is probably the impact in terms of the dollar that you're also able to see. So, one is obviously increased data production, but also much leaner teams to be able to do that. Hopefully, that answers the question, Praneet.

Next question is from Abhinav.

Yes. So, I want to understand the new businesses or new -- what we are selling for start-ups. So what is the revenue contribution overall for the newer segments compared to the traditional segments which we are selling?

Yes. Thanks, Abhinav. So in terms of the new versus olds, so these are not new segments. These are segments wherein we already had some customers and what we did essentially is that had separate teams focus on them. right? To give you example, earlier, the same team would be talking to like an investor or a start-up or IB, right? And right now, we have carved out the team so that one is different salespeople speak to these people as well as they're able to do outbound, right, which we were doing much lesser of that earlier, right? So, they are also able to do outbound in these segments. So, these are not new business units, but these are customer segments that we have carved out wherein we already had some customers, and we wanted to sort of increase the focus or separate them out from the horizontal team so that we can actually grow revenue in these segments, right? And we had slightly different requirement in terms of how we onboard them, how we do sales, et cetera, right? So, coming to the contribution, so ideally, we started with a few vertical teams last year. And right now, going forward, we will probably having most of the teams or most of our customer segment being served by vertical teams, right, versus the horizontal ones because that is working very well for us because in the vertical teams, we are able to do a few things. One is we are able to have more targeted pitch, right? So, we are able to have better sales conversion than the horizontal ones. And the second thing is that we are able to also do outbound, which is helping us acquire sort of -- more sort of high-value logos in these segments. And the third thing is that we have also set up engagement teams, right, which actually works by customer segment. So, because we have a sort of a diverse customer base, this has worked very well for us. And this will eventually span bulk of your customer segment. [Audio Gap]

So I think now we can move on to chat box. So the first question on the Q&A box that we have is from Aditya Iyer. So he's asking any guidance for FY '26 and FY '27 on revenue and EBITDA front? And the second is about what would be the pace of net customer addition on a quarterly basis going forward?

Yes. Thanks, Aditya, for the question. So, in terms of this year, we expect that this year will be -- so this year, we should see the growth to accelerate. So, it should be better than last year, and we should see that improve in the coming quarters. And in terms of profitability, so we are investing aggressively across 2 initiatives. One is across the sales and the other thing is also on AI, which is essentially on the back-end production, leveraging that for data building, which we'll continue to do that. But the cost will probably increase only in single-digit percentage despite all these initiatives. So, we'll continue to generate cash, but I think we will -- we have not so much focus on increasing sort of profitability. I think we'll probably be in the similar range in terms of profitability, but you should see improving growth across the segments, right? And the net customer account, that volume should probably sustain. So, it should anywhere be closer to 100 net new accounts that you see getting added.

So the next question is from Sanjay Sood. Do you approach CEOs and supply chain managers of listed or other companies as all of them need data for sourcing of materials and services?

So thanks Sanjay for the question. I think we -- the way we do it is by different titles, right? So within -- for a corporate, for instance, there are a few titles that we target. So, one is your M&A team [Audio Gap] so most of the large, for instance, corporates also have an innovation team, which are essentially your vendor discovery for the long tail, right? So that is the team that we work with. Sales is another team that is working, that is growing well for us. So, any time you have a sales team who's looking at good quality customers within a particular city or within a particular ZIP code, that's another team that is growing for us, right? So, these are some of the teams. And in banks, we probably go with a few other teams, teams which are lending, et cetera. That is a few other titles that we work with. So within corporates, we typically have teams that basically sell to different titles. So, within the corporate, I think depending on the title, we would have different teams approaching them.

The next question we can take from Mr. Aryaman Pawar.

So the sense I'm getting is the sales verticals we have in India are performing much significantly better than the international business. And obviously, logistically much easier than scaling international sales vertical. So, because probably there are language barriers here, you probably need a different team vertical-wise for every country, say one for Germany, one for U.K., one for U.S. So, when can we see the kind of results we have got in the India business kind of translate into the same international revenue? Just maybe some light on that.

Thanks Aryaman. So in terms of -- so as I was saying like -- so a lot of the teams that we had launched was initially in India because it's easier to sort of see them in action, train them and then scale to other geographies. We have already started extending the vertical teams. So, to give you an example, if we set up a team for, say, investment bank, they would initially start with the India vertical and then more teams would get added, like one we've already added for U.K., another one for U.S., right? And then we will add sort of key geographies in that wherein we already had some customers and are getting inbound, we'll prioritize those. So that is already in the process, and you should see more results from that in the coming months. So that is already in process. And in some segments, we are already seeing some results. So that is why if you look at the overall growth rate in terms of the accounts, for instance, in the international geo, this was 25% this quarter. If you compare it to Q1 of last year, this was like minus 1%, right, the account growth rate. So, from minus 1%, it has improved to 25% and – right? So, you should see more sort of improvements in the months to come.

Our next question is from Mr. Praneet.