Tracxn, a leading market intelligence platform, has approved the allocation of 1.34 lakh (133,523) stock options to its employees under the TRACXN Employee Stock Option Plan 2016. The company’s Nomination and Remuneration Committee passed the resolution on March 4, 2025, ensuring compliance with SEBI’s Share Based Employee Benefits and Sweat Equity Regulations 2021. The stock options, each convertible into one fully paid-up equity share at an exercise price of Re 1, will be available for employees to exercise within five years of vesting. This move aims to enhance employee motivation and retention, aligning their interests with the company’s long-term growth.
1. Introduction to Tracxn
Tracxn is a market intelligence platform that provides comprehensive data on startups, private companies, and investment trends. It helps venture capitalists, private equity firms, and corporates make informed investment decisions. The company aggregates vast amounts of data, leveraging AI and machine learning to analyze industries, emerging technologies, and high-potential companies.
1.1 Revenue Model of Tracxn
Tracxn operates on a subscription-based revenue model, offering tiered pricing plans to investors, enterprises, and financial institutions. Customers pay for premium access to its extensive database, analytical tools, and customized reports. This SaaS-based model ensures a steady revenue stream, with different packages catering to varied business needs.
1.2 Founders and Background
Founded in 2013 by Abhishek Goyal and Neha Singh, Tracxn emerged as a solution to the growing need for structured insights into startups and private markets. Abhishek Goyal, a former venture capitalist, and Neha Singh, an ex-investment banker, brought their expertise to create a data-driven platform that simplifies decision-making for investors.
1.3 Services and Offerings
Tracxn provides insights into over 1.5 million companies globally, covering sectors like artificial intelligence, fintech, blockchain, and e-commerce. Its platform includes features like competitive benchmarking, market trend analysis, and personalized recommendations. Investors and enterprises use Tracxn’s reports to identify investment opportunities and track industry movements.
2. Tracxn’s Stock Option Grant
Tracxn’s latest initiative to grant 1.34 lakh stock options aims to enhance employee engagement and reward loyalty. The options, convertible into equity shares at an exercise price of Re 1, allow employees to participate in the company’s growth. Employees can exercise these options within five years from the vesting date.
2.1 Compliance with SEBI Regulations
Tracxn has ensured that the allocation aligns with SEBI’s 2021 regulations on employee stock options. The plan includes provisions for corporate actions like mergers, rights issues, or sales of business divisions.
2.2 Impact on Earnings and Shareholding
The stock option grant does not immediately impact Tracxn’s diluted earnings per share. The actual number of shares issued will depend on the number of options exercised over time. Once exercised, the shares will have equal rights as existing equity shares.
3. Learning for Startups and Entrepreneurs
Tracxn’s structured approach to employee incentives highlights the importance of retaining talent in a competitive market. Startups can learn valuable lessons in workforce motivation, long-term planning, and regulatory compliance when implementing stock option plans. Offering ESOPs can drive employee commitment and align their interests with the company’s success.
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