Tracxn Technologies Ltd (NSE: TRACXN) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Neha Singh — Co-Founder, Chairperson and Managing Director
Prashant Chandra — Chief Financial Officer
Abhishek Goyal — Co-Founder, Vice Chairman and Executive Director
Analysts:
Devanshi Kamdar — Analyst
Sidharth Agrawal — Analyst
Nikhil Chandak — Analyst
Vidit Shah — Analyst
Abhinava Kashyap — Analyst
Praneeth Bommisetti — Analyst
Unidentified Participant
Presentation:
Devanshi Kamdar — Analyst
Good evening, ladies and gentlemen. Thanks for joining us today on the Q4 FY ’25 earnings call of Tracxn Technologies Limited. On behalf of Systematix, me, Kandar and Agarwal would like to thank you — thank the management of Traction for giving us the opportunity to host this earnings call.
Today on the call, we have with us Ms Neha Singh, Co-Founder, Chairperson and Managing Director; Mr Abhishek Goyal, Co-Founder, Vice-Chairman and Executive Director; and Mr Prashwan Chandra, our Chief Financial Officer. I would now like to hand over the call to Ms Neha to give her opening remarks and take us through the PPD. And probably after that we will open it up for Q&A session. Please use the raise An option to ask the question or you can also submit your questions in the Q&A box at the bottom of the screen.
Thanks. And with that, over to you, Neha.
Neha Singh — Co-Founder, Chairperson and Managing Director
And thanks a lot,. A warm welcome to everyone. Thanks so much for joining us today for our earnings call for the 4th-quarter and the financial year FY ’25. We are excited to present our results. In terms of the format, it’s the same. We would like to run-through a short presentation to share some of the key highlights. I’ll also give some commentary along, which will be helpful in the overall understanding and then we’ll follow it up with the Q&A session. Okay. I request you to take note of the standard disclaimers for this presentation.
A quick recap of the business. So traction is a data and software platform for the private market globally. So if you look at the public market, it has created multiple large companies, many of which are cash-rich, highly profitable companies. And as private market as an asset class is becoming large and important, it will also create platforms like this and we are building a global platform in this space. If you look at our customer-base, it includes venture capital funds, private-equity funds, investments banks as well as M&A and innovation teams of large Fortune 500 corporations. Also, it’s a global platform, so nearly 60% of our revenue is international and we have customers in over 50 countries. In — I would like to begin by summarizing the financial performance for Q4 FY ’25. Right.
To set the context, we have one business, one-and-one legal entity. So you launch these terms like standalone or consolidated all the numbers that we talked about is for the business overall. Revenue from operations for Q4 was INR21.1 crores, which is a 4% growth on a year-on-year basis. Total income was INR22.7 crore, which is an annualized run-rate of INR90 crores, INR9 crores. Coming to profitability, EBITDA for the quarter was negative INR0.8 crores.
To add, this EBITDA also includes other non-cash expense like ESOP charge. PAT for the same-period was positive INR0.5 crores and PAT margin was 2.6%. Coming to some of the other key metrics, the customer account continued to grow. Our number of active customer account reached 1,926 at the end of Q4, which is a 47% increase on a year-on-year basis. Deferred revenue for Q4 FY ’25 was INR37.5 crores, which is a growth of 14% on a year-on-year basis.
I’ll also quickly summarize the overall numbers for the last financial year. So revenue from operations was INR84.5 crores, which is at a 2.1% increase. Our total income was INR90.4 crores, which is a 3.8% increase on a year-on-year basis. In terms of profitability, EBITDA was INR0.8 crores. For FY ’25, EBITDA margin was 1%. PAT was INR4.9 crores for FY ’25 and PAT margin was 5.8%. The business continued to generate positive free-cash flow. So the free-cash flow for FY ’25 was a good INR4.3 crore — INR14.3 crores. Our cash-and-cash equivalents stood at nearly INR94.6 crores, which is an increase of 25.7% on a year-on-year basis or an increase of INR19.4 crores in absolute terms on a year-on-year basis.
So that’s a fairly large increase. In the subsequent slides, I’ll be covering each of the metrics we talked talked about in the summary in more detail, starting with revenue. So revenue from operations is essentially revenue from platform subscription. Bulk of this revenue is subscription base. 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 seen, we only recognize revenue for the time duration falling within the reporting period for which the service was made available, right?
So as discussed earlier, revenue from operations in FY ’25 was INR84.5 crores and total income was INR90.4 crores. And we’ve also added the historical data for the last four financial year for handy reference. EBITDA and now coming to profitability, so we continue to have profitable operations in FY ’25. EBITDA for FY ’25 was INR0.8 crores.
Please note this includes all the non-cash expense, primarily ESOP expense. If you exclude these non-cash expense, the adjusted EBITDA was INR5.5 crores positive for FY ’25. PAT was INR4.9 crore. If you exclude the non-cash expense, the adjusted PAT was INR10.8 crores for FY ’25.
Coming to margins, EBITDA margin was 1% and PAT margin was 5.8%. Just a point to note here, in the PAT calculations, you will see a tax component, which is a tax amount set-off with the deferred tax asset.
So this is a non-cash component as we don’t have to pay taxes as we have accumulated losses. But this non-cash expense is included in the PAT calculation. There was some deferred tax provision in FY ’25 due to the periodic assessment of the deferred tax asset. These are only accounting in nature, hence this has been excluded from the PAT calculation for a like-to-like comparison in this deck that you’ll see. Right?
Another metric that we track is what part of the incremental revenue is going to bottom-line. So in a good year like FY ’21, ’22, this metric was close to 80%. In FY ’23, this was 31%, then it went back to 43% in the last financial year.
In FY ’25, the incremental revenue was offset by the increase in cost as we aggressively are investing across various growth initiatives, which we’ll talk about subsequently. But just a point to note that despite these investments in growth, we continue to have profitable operations as well as generate free-cash flow during the financial year.
Coming to expenses, our total expense for FY ’25 was INR83.7 crores, which is a 7% increase over last financial year. On the right-hand side, we have given the breakup of this cost across the key components. The key components are the same as what you had seen previously, but just to summarize, first, bulk of the expense is steel cost.
So in FY ’25, this was 88% of the total expense. But this is has been the same range across the last three financial year as well. So across FY ’22, ’23, ’24, this was 89%, 88% and 88%. Just a point to note that all our team is in-house, there is no outsource or contract workforce.
The second-largest item is cloud-hosting, which accounted for 2.9% of the total expense. As we do a lot of data processing and analytics. This is followed by rental expense. The other interesting aspect is that we do not have a large paid marketing line-item because we do not have a large paid marketing spend, neither digital marketing or offline base, typically required for customer acquisition.
The reason for this is that we are a data company and we produce a lot of content and hence are able to use that to generate a lot of organic traffic. So it’s a fairly efficient way to acquire customers.
Another interesting point that you see across the last four financial year from FY ’21 to ’25, in the same-period, the headcount increased by 6%, right, from 624 at the back four years back to ending INR664 this financial year. The total expense during this four years increased by 37%, but the revenue nearly doubled.
So it’s great to see that in the same-period that the revenue doubled, the headcount only increased by 6%, right? So this is also a great testimony to the operating leverage of the business. Moving to some of the other metrices, the — in terms of the customer accounts and users, we have seen a fairly high pace of volume — volume growth in FY ’25. We closed March ’25 at 1926 accounts, which is a 47% year-on-year growth.
In terms of users, there were 5,051 users at the closing and this is a 41% growth on a year-on-year basis. The net addition has been increasing Q-on-Q since last March of ’24. With Q4 like the last quarter, Q4 FY ’25 being the highest net addition in terms of number of accounts.
And you’ll be glad to note that in terms even FY ’25 was the highest net addition in terms of the number of accounts and the number of new users as well. Moving on to some of the other metrics, the company generated positive free-cash flow of INR14.3 crores in FY ’25. If you see this is an increase of INR4.1 crore over last financial year.
The cash-and-cash equivalents stood at INR94.6 crores, which is a very healthy increase of INR19.4 crores on a year-on-year basis or a 26% increase on a year-on-year basis. So we continue to generate free-cash flow and add to the cash throughout FY ’25. Right. Some of you had requested for a split of customers by customer type.
So we’ve also added that data. So if you look at the accounts ending FY ’25, the split across the three categories are as follows. Nearly 50% of the accounts are from investment industry, which includes customers across private-equity investors like VC funds, PE funds, investment banks, family offices, accelerators, incubators, etc. 46% of the customers were from corporates.
This includes primarily corporate development team, M&A team, innovation teams at the corporates, consulting companies, etc. The other — the remaining are others, which includes your academic institutions, government agencies and others. So as we’ve mentioned previously, this is a fairly healthy spread across investor ecosystem as well as corporates.
So essentially, there’s a — there’s a diverse and rich customer-base that we address and this slide also gave an expanded summary of the titles within the investment industry and the corporates that we work with, right? So this gives us a large addressable market to tap into coming to some other interesting characteristics and metrics of the business, 60% of the revenue for FY ’25 was from outside India.
These customers span over 50 countries. The top-five countries within this show a similar spread to where you have large corporates as well as private market investors. The top-five countries for us by number of customer accounts are India, US, UK, Singapore and Germany in terms of some of the other matrices, you can also split — you can also see the split of growth across India and international.
On the left-hand side, you can see the split of India and international revenue for the last three financial years. As you can see in FY ’25, we had an accelerated growth in India with the revenue increasing by 18% over last year. So though the overall growth looked lesser, mainly because of the international market continued to have soft macros, but you can see we have seen a fairly healthy growth acceleration in regions where we have been investing in growth initiatives, primarily the vertical teams.
So once we replicate the same playbook in international geography, we expect to start seeing the overall growth rates also improve there. On the right-hand side, we have shared the number of accounts, which give us a revenue of more than 20 lakh, 30 lakh, 40 lakh across the last five financial years. So if you see the number of clients grew consistently across all the revenue buckets across the last five years.
So it is interesting to see that despite market conditions during the last financial year also, some of the large accounts continue to grow for us. This indicates basically the fact that customers are willing to pay more if you deliver value and there’s also a headroom for account expansion.
Similar to the previous quarters, I wanted to talk a little bit on the market as well. So if you look at the last two years, FY ’23, ’24 of muted years for the private market. If FY ’23 — sorry, the calendar year ’23, the tech funding, if you see was down 40% globally in India, it was down 60% on a year-on-year basis.
2024 was slightly better in terms of the dollar invested, but it was only the second-lowest if you see across the last seven years and 60% down from the peak and the deal volume was actually significantly lower even as compared to 2023. So 2024 was probably the lowest across the last 10 years in terms of the deal volume, right? And the similar proxy is the similar trend you can also see on the late-stage.
So one proxy for the late-stage activity is the number of, say, new Unicorn startups which are getting created or the new private companies which got valued at over $1 billion. In 2024, this number was 98 new unicorns that got added globally in India, six new unicorns got added last year.
This year is slightly better than — so 2024 was slightly better than 2023, but again, it was only the second-lowest across the last seven years. In terms of M&A activity, you see some recovery. So 2023 was fairly low. 2024 you saw — you saw a slight recovery, though it was only the second-lowest across the last decade. The current run-rate if you see in 2025, it looks slightly better than 2024, right, as well as across the last two years. And even if you look at the IB investment banking fee, which is the investment banking M&A advisory fee 2024. This also saw some recovery to what it was basically five to six years back. So though this is one of the lowest you see, but you are seeing some recovery and hopefully that will continue across 2025 as well.
Coming to some of the other business metrics, we do see some sort of green shoots. One of the recent growth initiatives we had talked about earlier was vertical teams was it vertical business unit-wise team. And we had mentioned that most of the vertical teams we had also launched in the India geography. So while we’ll talk about the acceleration that we have seen due to individual vertical teams later in the in the presentation, but we also wanted to share the overall acceleration that we’ve seen in the India geography due to this. Right.
So despite market conditions being sideways, we’ve seen a very healthy growth, revenue growth acceleration in India geography. So the India revenue accelerated from 14% last year FY ’24 to 18% in FY ’25. Further, the exiting trajectory was even higher. So if you look at Q4 FY ’25, the growth rate was 24% on a year-on-year basis.
Hence, we expect this revenue growth trajectory to continue and further accelerate in FY ’26. So this playbook, which is only a few quarters old is working and working very well. So our plan is basically to replicate it to other geographies as well as so that we can start seeing similar acceleration in other geos as well.
Coming to our account — customer account growth, so we’ll be very excited to hear that we continue to have very-high and accelerated volume growth. Here on the left-hand side, you can see the Q-on-Q trend of total number of ending accounts. And on the right-hand side, you can see the number of net accounts that got added each quarter.
So if you see previously, we used to add anywhere on an average between 30 to 60 net-new accounts on a quarterly basis. We have seen this pace accelerate starting from Q4 of last financial year where we added 88 net-new accounts. And this pace has been accelerating across the last five quarters on a consistent basis.
So if you see Q1, Q2, Q3 of the current financial year, FY ’25, which is last financial year, this increased to over 100 net-new accounts getting added and this momentum sort of accelerated even further. So if you see last quarter, which is Q4 of FY ’25, we added an all-time high number of accounts. In terms of numbers, Q4 saw 227 net-new accounts getting added, which is, as I mentioned, as a new all-time high, right?
Again, this is thanks to a lot of the growth initiatives that we’ll talk about in the subsequent slides. On the user side also, this quarter saw second-highest number of users getting added. So we added total of 4 25 users on a base of slightly over 4,600, so reaching crossing 5,000 users overall. Historically, we have added anywhere on an average like 40 to 80 users on a quarterly basis.
So this is sort of a multifold increase, right, that we saw in FY ’25 coming to deferred revenue, we continue to see this increase. The deferred revenue for FY ’25 was INR37.5 crores, which is a 14% year-on-year increase also covering more details on the international markets, we have also — we have seen the account growth improve.
In FY ’25, the number of subscription accounts as of end-of-the period grew by 26% on a year-on-year basis. So though it was not as high as the India geography as the number of accounts grew by 65%, but it is still better improvement over last year.
Last year, we saw negative 5% growth in terms of number of accounts. This time it was positive 26% in FY ’25. Most of the reason for acceleration here that you see is the generic sales and marketing initiatives, primarily increased organic traffic and the second is launch of traction line.
So what has worked well in accelerating the India growth is basically the vertical teams plus investing in augmenting data, right, which will also talk about sort of replicating these two things overall. And once this happens, we should start seeing the overall growth rate also improve. Coming to the platform engagement metrics, they continue to look very healthy and following the historical upward trend.
So if you look at the platform usage, which hears in terms of number of exports in my analyst data queries has grown by 1.5 times across the last two years. Engagement has increased both at the overall level as well as per user-level. So this is a very healthy trend that we continue to see.
Apart from these, we at our end have been investing heavily across various growth initiatives over the last few quarters. We span across go-to-market funnel of sales, sales marketing account expansion and we continue to see good results from this. In the following slides, we’ll talk about some of the initiatives that are giving sort of good results and hence we expect sort of further acceleration to happen.
The first is, you know, the first growth initiative that we have talked about a couple of times that we aggressively work on is basically your search engine traffic. So one of the interesting things is about scaling our organic traffic. So this continues to be a big focus area for us.
Being a data company, we are able to use a lot of data that we own to launch a large set of public pages, which generate a lot of customer traffic. For instance, when someone is searching for things like fintech companies in Singapore or SaaS companies in North-America, they come across our pages and we are able to generate leads through that.
So if you look at our organic search traffic that we got across all our pages, that was over 21 million in FY ’25, right and so a couple of things regarding that. One is that we have — this is a very large traffic panel that we’ve been able to build. Second, this has grown rapidly as you see across the last few quarters.
For instance, it has grown over three times across the last three years. And thirdly, we continue to work on this aggressively and we expect it to increase even further. Another very interesting growth initiative that we talked about earlier is the launch of Traction Lite. So we launched Traction light last year for product-led growth to increase the awareness about the richness of the platform among potential customers.
And with traction light, users get access to the entire platform when they sign-up though obviously with some limitations such as restricted daily limits for the profile views exports etc platform modules so in just over one year since launch we have over 1,39,000 sign-ups for traction light so this is a fairly large set of users have been able to sign-up.
Also, this pace of acquisition has been increasing on a quarter-on-quarter basis. So another interesting aspect is that the users who have been able — who have signed-up have also been using the platform actively. The monthly active users have now crossed over 30,000 users. Right?
So this is a fairly 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 user’s express interest and upgrade over-time, right? So just to give you an update on the recent quarter in terms of the matrices, if you compare Q4 of last financial year FY ’24 to Q4 of FY ’25, the number of organic sign-ups have almost tripled, right?
Average monthly actives have quarter pull, so increased more than 4x. Average number of users per day hitting the credit limit have almost tripled. So we have also seen an increase in upgrade requests and demos. So this overall continues to be on the path to become a very, very large acquisition channel for us. Coming to the vertical teams or the specialized teams that we had set-up for select high-potential customer segments, we continue to see very good results.
A good example being universities, which we’ve talked about previously. Just to summarize, this is a specialized team with cumulative experience of over 20 years selling to universities that we have set-up. Majority of our relevant customer segments, if you see come from top universities globally, which is also a great avenue to educate them about data platforms like ours.
So initially, this team started with new sales, wherein they were able to significantly accelerate customer acquisition rates and later they also took up engagement where they were able to work towards increasing activation and account penetration, right? So this was like University was one of our initial vertical teams, which was set-up and it has been over a year since launch.
So we also wanted to share some results and we’ll be very excited to hear that. So we see the number of account — number of customers in this segment have increased by more than 300% in the last 12 months, right, which is FY ’25 and the revenue from this segment has increased by 100% in FY ’25 as compared to last financial year. So because of these focused teams, we are able to do very targeted outbound and get very-high potential logos as well. So if you see in the last financial year FY ’25, we added many top universities, including three more IMs, ITs and many other universities as well. In addition, we’ve also been working towards including traction in the relevant course works, right, to actually increase the sort of long-term — long-term sort of retention for these customers.
And we’re very happy to know that traction has been included in some of the top universities such as and ISB for courses such as investment banking, impact investing, venture capital and private-equity courses. In addition to inclusion course work, we also working towards increasing engagement with activities such as on-campus onboarding sessions for the entire incoming back to familiarize them with the platform. So this has led to a further increase in engagement as well.
So this is a good testimony to the vertical sales team approach that is very effective. So this has enabled us to increase both revenue as well as market-share in these segments. And as we expand this approach to other segments, we accelerate a similar boost to growth — in growth across multiple other customer segments as well. We have also set-up a specialized team for startups.
We see high-volume of inbound from startups. So even though they are served by the same platform, they have a slightly different use-case and workflow requirements. Some of them use traction for business development, fundraising, competitor analysis, market research.
So it’s a fairly high-volume segment, but at a lower-price point than investors. But cumulatively, this can be a fairly sizable segment for us. So we had set-up a separate GTM team for this as we were getting a very-high and increasing volume of inbound. So interesting point to note that in FY ’25, we saw over 100% volume growth and 60% revenue from international customers.
Another recently launched team was accelerators and incubators. Under this initiative, we are focusing on customers across private incubators, government incubators, universities and corporate accelerators. So we’re seeing good initial success in the pace of acquisition having increased in just the first two quarters since launch.
Interestingly, even in this segment, over 50% of the revenue from new customers are from international customers in Q4 FY ’25. Another vertical team we had launched was the investment banking team. So this team sells to the investment banks through both outbound and inbound reach outs.
We had also augmented the data coverage required by this customer segment, which helped us to improve conversions in this segment. This included increasing coverage of private company financials, key ratios, PC and P investor database for their outreach efforts, etc.
We had also launched additional features on the platform, one of them being startups when they are looking — they can actually mention that they are looking to hire an investment bank on the platform. So this helps in-building a sales pipeline for the investment banks.
So we continue to see very good results here. The logo penetration in India continues to increase by 1% on a month-on-month basis. The pace of customer acquisition in this segment has almost tripled with a dedicated team.
In India, for instance, the number of accounts grew by 70% and the revenue grew by nearly 30% on a year-on-year basis in FY ’25. We have started scaling this to other key geographies as well. Another vertical thing that we had launched recently is the corporate sales team.
So this is a relatively new team, which focuses on users with corporate sales background. We’re typically looking for scouting and analyzing companies across various sectors and geography for lead-generation market analysis, competitor benchmarking, business development mandates, etc. So we are also augmenting the data on the platform for the segment.
For instance, they needed pin code data, they needed CXO profiles, etc. In terms of volume growth, the number of accounts grew by over 100% year-on-year in FY ’25 for this segment. So even here, we see significant revenue acceleration and interestingly, over 50% of the revenue in this segment was from international customers based on the success that we saw in the initial vertical teams, we had accelerated the launch of more teams and launched about 10 additional vertical teams.
These are specialized team for customer segments such as venture capital funds, corporate M&A teams, corporate sales team, etc. As mentioned earlier, we believe that we have cracked a very repeatable playbook through this architecture and sending up new units essentially to cover more of the customer universe that we already have should have a material impact.
In all these units, we have initially started with targeting new sales, which help us accelerate the pace of customer acquisition. And later these teams move to also include engagement within these segments, which help us in retention, market-share penetration and revenue growth in these segments.
As mentioned in the earlier slides, we have also started scaling these vertical teams to key geographies internationally and we expect this will help us bring us to our desired growth trajectory.
Moving on, another interesting growth initiative that we have been working on is expanding our coverage in financials and captable datasets on private companies on the platform. These datasets are particularly in-demand by certain customer segments like private-equity, investment bank among others and we have been significantly increasing the throughput of production of these data engines, right by talking about financials, today we have financials of private companies in over 20 countries globally.
The number of detailed financials on the platform have increased at a fairly rapid pace. In 2023, we had increased this number by 5x on the platform. In 2024, we increased it by another 6 times, right? So it’s essentially 30x in just two years and within the first four months of 2025, we have increased by another 1.5x. Right.
So as of April ’25, we had over 1.6 million companies with revenue data and over 1.1 million companies with detailed financials updated on the — available on the platform. So one thing which is obviously very interesting in this is that we’ve been able to add these datasets at a fairly great pace without increasing headcount much. So this again is a great testimony to the level of automation and intelligence we’ve been able to build as part of our infrastructure, which helps us to be able to do this at this space.
Coming to cap tables, cap tables are requested by investors to see the detailed shareholding valuation latest as well as historical share price of private companies. Today, we track cap tables of over 15 countries. At the end of 2023, we had 39,000 companies with cap tables, the subsequent year end of 2024, this increased to 3 lakh 13,000 companies, the detailed shareholding on the platform. So it’s 8x increase in just one calendar year.
As of April ’25, this number has further increased to 341,000 companies having cap tables on the platform. Legal entities, we had launched legal entities database about two years back. The legal entities basically help investors to screen through legal entities registered in various countries for specific high-growth mattresses like revenue growth, growth rate, profitability, employee count, etc. So this data has also expanded at a very good pace.
So it started with 11 million at the end of 2023 to 64 million at the end of FY ’25. The major countries that coverage include US, UK, Japan, India, Australia, Brazil. We also continue to see good customer usage with legal entity stages increasing on a Q-on-Q basis, the view is increasing on a Q-on-Q basis.
So there’s a lot of focus also on adding more data points to the existing legal entity, which enables us to help to increase penetration in some of the new and existing customer segments. We are also building a deeper coverage of regulatory data on the private companies and legal entities.
So some of the data that are live and in pipeline include things like loans and charges data, patent data, legal case data, FDA approval data among others. These are particularly important for new and existing customer use cases, which includes things like deeper due-diligence, KYC, etc., right, which helps us increasing the penetration within the existing and new customer segments.
To give you examples, clinical trial leaders crucial for healthcare and life sciences companies as well as healthcare-focused fans. This is a fairly cash-rich customer segment. So we are also working towards building coverage in these datasets. Similarly, data points like taxation compliance, filing delays, payment delays, bankruptcy filings, etc., are essential for due-diligence.
Another interesting initiative that you talked about earlier is press mentions. Whenever media talks about data on private companies, we want them to code data from traction. So we have been working on various initiatives including launching reports with media, data contributions, regular columns in newspapers, etc., that have given us multifold increase in the number of press mentions across various media — respected media outlets. In FY ’25, we had some very prominent partnerships under those initiatives.
To give you examples, we were data partners for a report with Titan Capital under the report with the — call the first check report with the Southeast Asia focused fund called Jungle Ventures. We have the data partners for 50 future unicorns of Karnataka bygnormic Times. We were also the knowledge partner of ET Startup Awards, which is a very prominent private market event hosted by the Economic Times.
Lately, we have also been working on increasing coverage internationally starting with Southeast Asia. So we have launched reports in Southeast Asia and also are cracking some of the regular columns over there.
So the advantage of press mention is that a lot of people discover our data for the first time through media and then come to our website and generate a very-high intent yield. This also goes a long way in-building a brand as an intercompany and helps in our sales conversion and eventual revenue growth. We’ve also been an AI first company and continue to harness Gen AI for various key data production.
A great testimony to our use of automation and intelligence and data production is that we’ve been able to multiply our data sets while reducing the manual intervention and shrinking headcount. In 2024, for instance, we increased the coverage of the key data points on our platform by over 5x, while in the same-period, the data production team’s headcount reduced by 10%. So we are seeing both. On one-hand, we are seeing acceleration in the amount of data production pace.
On the other hand, we are seeing much leaner teams to be able to do that. So you’ll be glad to know that the data production team further shrank. So if you look at the last quarter, which is Q4, the data production team shrank by another 10%, indicating further efficiency and accuracy in data production that we’ve been able to achieve through automation.
So Gen AI continues to be a key focus for us, some interesting areas in which we leverage AI includes things like identification of upcoming private companies, data extraction from unstructured data and documents, enabling massive scalability to accelerate the pace of data addition, industry classification, right, data production for various transaction datasets like funding acquisitions, improving data accuracy.
Even on the GTM front, we are using it for refining lead profiling, sentiment analysis of the interactions, right? So we expect further optimization to continue to happen. So on one-hand, you can expect that the throughput of the system continues, while on the other hand, you can expect that the data production becomes — the teams become much more efficient and leaner.
So we remain fairly excited about the possibilities of Gen AI technology and its potential for us to be able to accelerate building the global private market data. Coming to some of the other KPIs for handy reference, the first-half talks about the contract price or the invoicing amount.
So FY ’25, this was INR88.5 crores, which is a 2% increase on a year-on-year basis. The second graph talks about the number of entities profile, which is a proxy to the amount of data added on the platform.
Today, we track more than 4.5 million profiles on the platform, including private companies, funds, etc. This coverage of companies increased by 51% on a year-on-year basis.
So that’s all. This covers most of the key updates that we had. Subsequently, we also have some slides with the detailed financial statements, which we can go through for more details.
So that’s all passing it back to for any Q&A that the Group might have. Thank you so much.
Questions and Answers:
Sidharth Agrawal
Yeah. Very good presentation. Love it as always.
Devanshi Kamdar
Yes. I think we can wait for a minute or two for the question queue to line-up and then we’ll start taking questions.
Sidharth Agrawal
I guess three people have raised friends I think four
Devanshi Kamdar
Think the first question we can take from the Q&A box from Roy. Neha maybe you can read the question and then answer the same. Yeah, from the Q share box.
Neha Singh
Yeah. So I’ll just take the first question, which is basically now you’ve seen one year in growth in accounts from 100 per quarter to 200 per net per quarter. Could you give us some stat of uptrend of revenues of some of these accounts that got added since some of them have seen over a full-year? Also, can you see the trajectory of 10 lakh plus accounts for the last few years?
Yeah. Yeah. So thanks, Sagara for the question. So coming to the question of the upgrade cycle, so I think most of the accounts, we are yet to see the upgrade cycles happening there because if you see, I think last year, obviously, the volume growth had been fairly high and most of the customers will have the next upgrade cycle in the subsequent years typically. So for most of them, we have not had the upgrade cycle as yet and we’ll probably see that in the subsequent quarters going-forward. Right.
So again, I think for us, this kind of account penetration is very interesting because there are lot of accounts that we currently have to basically also engage and then go more deeper because most of these accounts actually start small. Yeah. And on the other — your second part of the question, which is the trajectory of the 10 lakh plus accounts for the last year.
So we have shared this data for the last five financial year and how these kind of accounts have trended. And hopefully, we should see — so like we should see some of these the accounts that we have sort of acquired reached their — my sense is that maybe in a few quarters. So I’ll move to the second question, which is could you also give a flavor of dollar and euro accounts focus going-forward?
So if you see in terms of our international revenue, 60% of our revenue is from outside India. Most of this account are in dollar-denominated. I’ll also probably have Prashant add to this, but to my sense, most of these accounts internationally are in dollars, right? And Prashant, maybe you can also add to
Prashant Chandra
That’s correct. I mean like we — for our international customers, we bill in USD and I hope like that’s consistent for all our customers overseas..
Devanshi Kamdar
Okay. Sure. So next question I think we can take from Nikhil Chandrak, you can unmute yourself and ask a question. You’ve raised your hand.
Nikhil Chandak
Hi, can you hear me?
Neha Singh
Yes. Hi, I’m.
Nikhil Chandak
So my question was more say mid to-long-term, just given the way we’ve seen AI tools build-out and get developed, you know on a longer-term basis, once these tools get more-and-more sophisticated, I’m just thinking if one just takes, for example, an open AI monthly subscription, would he be as good with the data say traction gives — can he get similar kind of data on OpenAI?
And if that keeps happening, you know, wouldn’t customers just shift to a single tool like OpenAI or Brock or whatever for satisfying not just their data needs on unlisted companies, but other information or data needs. So from a longer-term perspective, while you always say that AI is a — it’s helping, but somehow intuitively, it feels that AI can be a bigger thread because as these tools develop, somebody may not want to take-up an attraction subscription, but just take one single open AI or whatever subscription. So I just wanted your thoughts on that over the medium-term, how does this kind of impact growth and ARPU? Yeah.
Neha Singh
No, thanks a lot, Nikhil. So AI is something that we are sort of — we are very excited about because I think we’ve been using a lot of these for the last 10 years, a lot of sort of machine-learning across the last few years. In the last, I would say one to two years, the results that we’ve been able to get through these have all — have increased. That’s why we are sort of fairly excited about it. And that’s why you also see a lot of our pace sort of increase. Coming to your second question, it’s a threat. We don’t see this as a threat.
To give you a parallel, for instance, if you take maybe public market investors only use some of these front-ends and stop using any of the databases, maybe that will happen to the private market investors after one or two years, right? So there’s still a lot of you know distance which is there because investors — because especially institutional investors because we work — most of our customers are enterprise users, not so much retail investors, but all of them are enterprise sort of users, investors as well as large corporates. For them, it’s like a day job. So for them, they will continue to sort of require more-and-more data, I would say.
And for us, we see it as an enabler, right? So we see as a great enabler. I think for us, if you take the — us, we are probably having one of the best tech back-end than any other private data market platform companies globally, right? And that is why the pace at which we are able to add data is also fairly fast. So today, we have financials in more than 20 countries wherein a lot of the times the filings are available in non-English language, right? We’ve been able to do that because of use of technology and fairly aggressive sort of infrastructure that we’ve been able to sort of build. So I think for us, we see as an enabler, we — we see this will continue to remain because we are serving not the retail but the institutional, you know the asset class in the private market hopefully that answers the question.
Devanshi Kamdar
Okay. So the next question we can take from Mr Vit Shah, you can unmute yourself and ask the question.
Vidit Shah
Hi, thanks for taking my question. Just one from me. So we’ve seen very, very good customer account growth and users growth over the last 3/4 or four quarters in fact. What is the comfort level at — after which you think about start increasing pricing for these customer accounts? It may not be immediately when they up for renewal. Are you targeting a certain account base before we think about increasing our prices for our subscription.
Neha Singh
Correct. Yeah. Thanks a lot, Pedit, for the question. So our current strategy continues to be, so we will be — so whenever the renewal happens, we have — so we have done two things. One is for some of the renewals, we have default that there will be some price increase maybe in the first renewal or the second renewal.
So that we — for some of the customers, that is part of their onboarding, plus another experiment that we have done for a limited set of customers is that having a 3% annual increase. So this we have started to — doing that for a smaller segment, which is the annual increase that is there, which you would be familiar with some of the other financial data platforms that have had.
So these are the things that you know that we will — that we are sort of — that will pan-out in the coming quarters. But having said that, I think one of the things which we aggressively sort of also continue to do that is basically the old vertical team approach is sort of is working.
So we basically have more of the customer-base covered through these teams, which we believe helps us in more — in working with these customers in a more — increasing the engagement of these customers in a more deeper manner.
So that is the other thing that we’ll also see in the in the quarters to come that we are working on so hopefully that answers the questions with it.
Devanshi Kamdar
So the next question we can take from Binav, you can unmute yourself and ask.
Abhinava Kashyap
Hi, Neha, thanks for taking my question. So I have couple of questions. So one is any subscriptions giving to brokerages like or someone so that traction data can be used for analysis within the platform.
Neha Singh
Okay.
Abhinava Kashyap
Because increasingly lot of investments are being made by public companies and private companies, so traction data is lot valuable analyzing companies.
Neha Singh
Yeah. Thanks,, for the question. So currently, we haven’t cater to this as a customer segment in a sense that we haven’t sort of talked about sort of partnering or licensing part of our data to any of these platforms. We are having — but maybe if there is a — you know maybe that’s something that we can explore. What we are exploring in terms of partnerships is with some of the large data companies in the international markets.
So for some markets, we are in conversation with — for some data partnership, which is essentially, these are data companies which are anyway selling to large — large corporates or either large financial institutions. And those which are now also looking at private market data, we will be able to sell-through them. They already have sort of sales team in these geographies. These may be, for instance, large limited partners who are looking at — who are looking at public equities are also looking at private markets or this would be corporates who are now looking also at private markets. So this is something that we are probably — that we are more closer to working with.
Abhinava Kashyap
Okay. So next question is on partnership with AI companies and enabling traction as an app within them. So directly as a chat platform, we can reach-out to traction database and get some data.
Neha Singh
Yes. Right. No, that is interesting. I think — that’s something — we are in early stages, but I think it’s a little far off. So — but this is something that we may sort of explore. We haven’t done anything — nothing is live as of now, but this may be something that we — that we may explore because some of the ones have reached out to us mentioning that financial data, financial customer segment is one of the largest segment that they are attracting or it’s a sizable piece of the customer segment that they are attracting. And if they can — if we can do some collaboration that data becomes accessible to them. So yes, that’s an interesting point. Nothing is live, live but yeah this is something that we might explore.
Abhinava Kashyap
Okay thanks a lot
Devanshi Kamdar
Okay so next question I think we can take from Akshay Soani you can unmute and ask hello Akshay you can unmute and ask your question. Probably we are not able to reach him maybe we can move on to the next one. Yeah so I think next we can take the question from Pranit, you can unmute and ask your question.
Praneeth Bommisetti
So thank you for the opportunities. So I wanted to understand in terms of onboarding new clients, what — are we facing any bottleneck in terms of onboarding? And before when we started using dedicated teams, how do we see the ROI going-forward? Like because since we are putting dedicated teams, the cost is going to go high, how are we going to measure the onboard ROI metrics on these?
And in terms of these clients also, I was wondering how many of them are first time clients in terms of using a data aggregator and how many of them are using it in addition and how many of them are replacing their existing data agregator with completely. Can you give me like idea of all of this?
Neha Singh
Sure. Thanks a lot for the question. So I’ll break-up into two-parts. One is basically in terms of the new customers, how many are — how many are new using a data platform for the first time versus how many are moving from a comp or those. So in terms of — so we have — we don’t have exact data, we have approximate data more anecdotal based on what the sales team basically gets the feedback from the customers.
So here, we continue to have about 40% to 50% of the customers are starting to use a platform for the first time. This includes some of the — even some of the large funds which are there or like universities or IBs, right, they are — they are doing — they were used to doing something internally, but this is the first data platform that they had sort of signed-up. So that constitutes to about 40% to 50%. The remaining, 20%, 30% are probably using some of the platforms and are using more than one platform as well or sometimes they were using some platforms and then they are coming to our platform because they are getting multiple data points at the same place, right? So that is part one of the question.
The second part of the question, which is basically vertical teams and how do we have ROI on those teams. So in terms of the cost of these teams, it is not very huge because these are fairly lean teams. These are typically team which is having say one business head and then under them they are having one team for the engagement, one team for sales, right, a senior salesperson and then a junior salespeople. So this is a fairly lean team, I would say. And typically they are able to have recover their ROI in the next, say, one or two quarters. And maybe Abhishek can also add a little bit of this.
So — but these — we are able to sort of track the efficiency of the — of these vertical teams very closely
Abhishek Goyal
So I think usually put up a business had maybe couple of guys in sales and then one person for engagement so these are usually starting with four to five member teams we would typically spend between five to eight lac a month-to begin with. And so within six months, in most cases, they are able to bring enough incremental revenue for us to justify them. And we have seen significantly higher engagement rates as well as all other matrices, our sales closure rates are much higher, engagement rates are much higher.
So that is a broad sort of financial impact of a vertical team on the P&L. In most cases, we have seen that ROI of the team is justified like within a couple of quarters.
Neha Singh
And also just to add to that, the way we’ve been able to — the way they actually structure is that firstly, they start catering to the new customers, so they work on new sales, there we are able to see sort of increased customer acquisition that accelerate.
And then subsequently, they also take-up engagement, whether they are working with also the existing customers to actually work on very interesting ways in which these verticals again vertical teams were not sort of able to work. They were able to work on very customer-specific teams to work on deeper engagement within them so there we have seen sort of good success and that’s why we are sort of rubbling down on that so hopefully that answers the
Devanshi Kamdar
Okay, so the next question we can take from Sharma, you can unmute yourself and ask hello?
Unidentified Participant
Yes thanks for this opportunity. I have a couple of questions from my side. My first question is like why was our deferred revenue degrewing quarter-on-quarter and when does this deferred revenue growth will translate into revenue.
Neha Singh
Okay. Sure. Thanks,, for the question. So one is the deferred revenue, actually if you see even in the last year you could see a similar trend in Q4 because of just the way the contracts are probably.
So you saw a similar trend you know in Q4 as well. In terms of when they will translate to revenue, so typically, most of our customer — like most of our contracts are either annual upfront or quarterly upfront or like 60% to 70% is as annual upfront.
So most of them would translate into accrued revenue over the next, you know, like two to four quarters. And maybe Prashant can also add here?
Prashant Chandra
Yeah. Hi,, hope you’re doing well. So I mean, I got your question of deferred revenue, like so there’s two things about it. One is see the deferred revenue is a balance sheet item, what is — what we see is an aggregate of the last one year, right? And what we sort of see in the revenue is the portion of the revenue which has accrued over the period.
Now so what happens is, let’s say if I build a customer on an annual basis, maximum three months of revenue will flow into sort of the revenue and the rest nine months will hit the deferred revenue. So as long as I mean like the billing is kind of increasing on a year-on-year basis, the deferred revenue will continue to grow.
Now how this equation is related, I mean like you’ll have to see the change in deferred revenue like — because that’s the portion which has been recognized in the revenue. And if the billings increase, you’ll see the increase in deferred revenue and if sort of billings are flat or sort of muted, you’ll see some degrow which is going to happen. Yeah. And I think that’s what it is how these are linked.
Unidentified Participant
Yeah. Thank you so much. Yeah. Yeah. Thank you. My second question is like which is related to default tax assets. We have — what is the rationale for this DPA write-off, which we did in this quarter and for the overall year?
And does it change that the company does not see any potential profitability in the future? That is my second question. And I want to know we have like INR5 crore in our balance sheet as a DTA. Does it also need to be written-off or what is a future.
Prashant Chandra
Can you take that question here? Yeah.
Neha Singh
Yeah.
Prashant Chandra
So,, regard to the DTA, so basically, this is more of an accounting exercise that we do every six years, sorry, six months and it is sort of tied to the historical growth rates, right?
And considering FY ’25 was somewhat flat on a year-on-year basis. So like once you plug-in those historical numbers, obviously, you can’t be factoring in a very huge growth rate. Now that really doesn’t represent something like because at our scale, I mean like a couple of sizable contracts and growth picks up and so on.
So for us, I mean like it’s more of an accounting exercise, not necessarily, you know, very reflective of the — of the business of the company. But in case I mean like the revenue growth picks up, then again, I mean like after six months, you will see otherwise it’s going back into the balance sheet.
Yeah. So it’s purely an accounting exercise that we do. In terms of the balance 5.6%, I mean, 5.6%. So like I said, I mean like totally again depends on how we — how we do in the upcoming quarters, I mean like — so while we have we have like sort of taken a very conservative position on this one, but we’ll have to still see how the numbers turn up in the — in the next quarters or so.
Unidentified Participant
So what you’re saying is INR8.5 crores will come back once there is a growth in the revenue. That is what you are saying, right?
Prashant Chandra
Yeah. So it is like once the growth comes in, I mean like the deferred tax assets. So basically what — the reason why it is like moving is because these tax assets have a certain life and before we — they expire, we have to utilize them.
So at every six months interval, the company along with the auditors sort of tried to estimate, I mean like what is the most likely scenario of realization? But like I said, I mean like it is — it is a mathematical exercise, not really, I mean like tied-up to the revenue growth or something.
We punch-in the historical numbers and that’s how we sort of estimate how this is going to be like.
Unidentified Participant
Ma’am, my final question is what is the guidance — growth guidance we are giving for FY ’26 and 20 September?
Neha Singh
And so just to answer the question, we are not giving any guidance, but we are expecting, as we have mentioned, the — if you look at our business, thanks to all the initiatives that we’ve been able to do, the India PAT growth rate, which accounts for about 40% of the revenue.
So that growth rate for this year was 18% and on a Q-on-Q basis, that is 24% growth on a year-on-year basis for the Q4. So that is already in the 20%. And ideally, we would want to replicate the same thing in some of the key geographies. So that also comes to the same over 20% growth rate. So we’re not giving any guidance, but our endeavor is basically to actually have the — have work on the other geographies so that we can — the single-strategy, which we have done it over here just replicated in some of the other geographies.
Unidentified Participant
And for us, international growth has been, like 6%, 7% it has de-grown, right? So where do you want to see that? If we are — if we want to grow the India business at 15% or 18% plus, but our international business has regrown to be growth.
Neha Singh
Right. No, so our strategy is simple, basically the same thing which has worked over here, which is the vertical — which is the business unit-wise team, which has helped us in revenue — so all the — if you look at all the business vertical teams, there you’ve seen revenue accelerate anywhere between in lot of the cases more than 30% on a year-on-year basis. So this is the same strategy that we are basically expanding to more customer — more of our customer universe. Currently, these teams do not cover all of our customer universe. So you’re basically expanding so that we get a similar sort of the acceleration over there.
Unidentified Participant
Okay. Thanks lot. All the best, sir.
Neha Singh
Yeah. Thanks.
Devanshi Kamdar
I think the next question we can take from the Q&A box is from Ashwini Singh. I’ll just read-out the question. The net customer addition has been impressive, but that has not translated into a meaningful value growth. Even with 600 plus new clients, the revenue is up less than INR2 crores year-on-year. It seems the new clients as well as the renewals are happening at lower rates from roughly INR640K to a year-ago to 440K per client. Is there a target number for revenue per client that you have in mind?
Will this number trend down further from here? Furthermore, when do you see meaningful value growth with respect to revenue would appreciate some revenue and corresponding net client addition guidance? Yeah, that’s.
Neha Singh
Yeah. So thanks, Ashley, for the question. So yes, that’s correct. So the volume growth has been sort of accelerating. You are not able to see that at the overall level, but actually if you see this in past and that’s why we’ve also given sort of the breakup across the different segments, wherever in whichever segments wherein we have had sort of more than 20% average volume growth in account the growth essentially, they’ve also had a decent revenue growth.
So for instance, for all the vertical teams that we mentioned about, like if you take IB in India that grew by 30%, obviously, universities grew by more than 100%. Even in the other segments like corporate sales start-ups, you saw acceleration of over 30%, which is there. You saw it in the different vertical teams. You also saw that the India level, right, like — because a lot of those like lot of the account addition also happened in this wherever the initiative was like. So for instance, India where the account growth rate was 65%, the revenue growth was also close to 20%, right? So you are seeing that in parts and you know that’s the basic line. So we’re basically working on two things. One is basically whichever segment that we are sort of prioritizing. We are working on both the sales as well as in augmenting the data coverage there. So there we are able to — once we do that, then in addition to the volume growth, in those segments, we are also able to have the revenue growth fee — we are also able to see the revenue growth. So hopefully that answers the question, Ashmi.
Devanshi Kamdar
And okay. The next question, I think we — is also.
Neha Singh
Yeah. Yeah, there’s also a question just before that Sanjay.
Devanshi Kamdar
Yeah, sure. So Sanjay, Suth question, I’ll just read-out. You have mentioned that in-spite of revenue increase of nearly 100% with 6% headcount, you are able to maintain revenue — employee expense of nearly at the same level of 80%. Can the revenue/employee be shared now and from now onwards.
Neha Singh
Thanks. So yeah, thanks, for the question. So in our business, actually the revenue — unlike in the services business, therein you care a lot about the revenue per employee in our case it is lesser relevant because essentially with the same employee base as we mentioned with hardly much thing, the revenue can essentially double because the gross margins of the business are fairly high.
So to basically serve the similar — even if we serve the double set of customers, the amount of incremental headcount that we’ll incur is very limited, right? It’s also the other investments that we continue to do. So that is not some of the metric that we sort of track closely because that can vary a lot like across one year sort of it varies a lot. Right.
We gave this number just to also show that like in the period wherein our revenue doubled the headcount only increased by 6%. So obviously, the cost also increased by about 37%, but this is just to show that if you have to double the revenue, we don’t need like double the number of people. It’s only very marginal increase in the in the team size that we would need because of just the high sort of margins of the business.
Devanshi Kamdar
Hi, everyone. Next question we can — yeah, next question I think we can take from Bhavik Narang. Despite decent customer addition in the international markets, the revenue growth was negative.
Could you help better understand this also what is happening in the international market resulting in sluggish demand and not in the Indian market?
Neha Singh
All right. Yeah. Thanks for having the question. So the sentiment is basically the same that we see in India as well as international. Even internationally, if you see both on the funding side, it has been part of the lowest year across the last 10 years.
And even on the corporate side, as you may have seen, you know, there continues to be some of the pressure even in the large corporates as well. So typically, for instance, we would have some growth from the existing customer, which was muted because of the fact that a lot of the customers are not doing. But having said that, the market is not different in India and international, it’s actually the same.
What we have realized is that there are some of the things that we had done during this that is sort of giving us good results. And in the international market in specific, you are seeing volume growth. You know, for instance, this year that was about 27% volume growth. This is basically because of the two things, which is the generic sales and marketing initiatives that we are doing.
One is basically the increased SUO traffic that we are getting across all the geographies, across all the customer segments. The second is launch of traction light. I think we were able to sign-up more than 1 lakh users in the first 12 months. So a lot of the increase that you see is thanks to these initiatives.
The second thing, we haven’t launched much in the international markets, which is basically the vertical themes that we talked about, wherein — wherein we have also able to see the revenue growth. And that’s why you know, once we replicate it, we hope that should also start to happen.
And the pressure in a sense that it was negative in a sense because even like we saw some impact in some of the large accounts, which is being some corporates or some of the investors, which were much lesser active than what they have been sort of traditionally across all these years. But having said that, we feel that this strategy, which we are doing. So this is working well in getting us the good leads.
Once we also start having the teams focusing on these geographies as well as working on the data, this will also help us in revenue. We’ve also — we have already got results in one or two countries like Germany, for instance, wherein we prioritize some of the vertical themes, there we already have like double-digit growth in last year, but we have to replicate it to more geography to actually, you know, have the overall sort of growth it also improve.
Devanshi Kamdar
Okay. So there’s another follow-up question from Bhavik. Also, we were planning to replicate similar GTM initiatives that we had taken in domestic markets, which has resulted positively. Any timeline when it is planned for international market and would a significant increase in sales team be required.
Neha Singh
Thanks, for the question. So in terms of timeline, it will be in the subsequent quarters as well. You know, so most of the teams that you see are probably four to six, six quarters old and we have just started in some of the newer geographies and maybe in the subsequent one or two quarters, you’ll see more action within them.
Coming to the second part of the question, which is, will it lead to significant increase in sales team. So there will be increase in headcount marginally in the sales team. So this is something that we continue to sort of aggressively expand on.
You may not see a lot increase in cost because as I was saying that we don’t have — typically one of the large items which scales a lot in companies are the paid marketing item, paid marketing line-item, which we don’t have our company.
So you will see some expense increase, but it may be sort of high-single-digit or low double-digit increase only in terms of the overall expense despite us investing in all these sort of growth initiative sales teams, you know sort of going-forward.
And — but you know, like even last year when we were sort of investing a lot in this, we continue to sort of sort of generate cash throughout the year?
Devanshi Kamdar
Okay. So next question I think we can take from Ravi Sinha from the Q&A box, impact of generative AI or any plan build MCP, another channel of interface and revenue growth guidance for FY ’26.
Neha Singh
Yeah. So I’ll take the first question, which is basically the impact of AI. So I think as you are saying, we are sort of very excited about the level that it has been able to sort of achieve.
We are able to do through AI. We are — as I was saying, we are a very tech-heavy company. Like if you look at our DNA, we are — our tech back-end today is one of the best across all the private market data platforms globally and that’s why we’ve been able to add companies at this space. We’ve been able to add data at this space.
And hardly any of the other platforms, for instance, you know have been able to add like if you look at it in terms of so many countries we’ve been able to add. To give you an example, a lot of the filings that we today track. So we have private company financials in more than 20 countries, share price in more than 20 countries, a lot of them have filings in non-English language.
We are able to still extract it, standardize it. We have been able to add so many other datasets, right, at a fairly fast pace. And this is thanks to a lot of the technology that we’ve been able to use. Lately, obviously, Gen AI has sort of become a key component, which has sort of good results. It is not still perfect.
So it’s not so much that we’ve been able to expose to customers, but it is still a fairly better — fairly exciting than what we were seeing probably two years back. So for us, I think we are fairly excited about it and that’s why even if you look at in our team, like though our — just the data on the platform has increased by five to 10x in just one year, the headcount in the same-period has shrunk by the data team headcount has shrunk by 10%, right?
So that is just a testimony to the kind of automation and we’ve been able to sort of build. We are sort of fairly excited about it and we believe that this helps us to capture global data at a much more faster pace, you know. So that’s on the first part of the question.
On the second part of the question in terms of the revenue, some guidance, again, we are not giving guidance, but hopefully we are we are expecting that you know that we should come back to the historical sort of growth trajectory.
Devanshi Kamdar
Okay. Thanks, Neha. Next question we’ll take from Akash from the Q&A box. So we see the private markets are taking time to pick-up. Many companies in the Europe and US are running cost-cutting initiatives. Why customers are not switching from competitors such as pitchbook? Is it due to stickiness of the product? What trends you are seeing customers switching to traction from other competitors?
Neha Singh
Okay. Well, thanks a lot, Akash. Akash for the question. So yes, there is there. But having said that, I think we have figured out sort of what is working and we are going to just double down on that.
In terms of your question on whether customers switching from one platform to the other. Interestingly, as I was mentioning, like 40% to 50% of the customers that we sign-up have actually not used any platform, like even if you look at some of the corporate M&A teams, etc., a lot of them have been doing it internally, right, not using sort of any platform.
So a lot of times, it’s not so much of a replacement of a platform. This market is not saturated. So it’s not so much like you are replacing a platform. A lot of times you have to sell independently, lot of the government agencies, etc., that you’re selling, right? Lot of these teams, innovation teams that you are selling to, you have to sort of sell to them independently, right?
So we do see some advantage in this in this time, for instance, if we are able to attract more customers given all the changes that are happening. So we do see that this is also a good opportunity for us to be able to sort of get to as many customers as possible and that’s why we are also focusing a lot on sort of acquiring new logos and new customers because we believe that this is a good — so this gives us a good long-term base that we can sort of expand over-time.
Devanshi Kamdar
Okay. Thanks, Neha. So the next question we’ll take from. What is the net retention rate of the customers on the platform? I mean, how much percentage of customers this financial year are the customers from last year?
Neha Singh
Correct. Yeah. Thanks a lot repeat for the question. So just in terms of how we measure retention, one of the ways in which to that — ways we do that is basically your proxy to net dollar retention, which is essentially what we track is your revenue from existing customers.
What that means is that if one set of customers — my set of customers paid me INR100 last year, how many — how much should they pay the subsequent year without me adding any new customers, right? So typically this number historically has been between 103% to 105%, right?
In a good year, we have also seen that increase to 115%. Last year, it was lower, lower than 100%. This was in the 90s, 90%, right. So we have seen two things to be able to improve this, like that’s why you also saw the impact in the overall one. So two-ways in which we have seen to increase retention, which is sort of which we also process of working with.
So one is in the segments wherein we are seeing impact improving data, right? So this can be a particular sector and region. So this — we have done it, for instance in one or two geographies in Europe last year wherein we saw results wherein we sort of invested in data, where we saw the retention rates increase.
The second, as I was mentioning is launch of vertical team. The way they work is basically they work with these customers for better engagement and they’re able to work with customers much more closely than the vertical teams, right? So to give you an example, the team which is working with investment bank, they come up with prioritizing more features like investment banks buy a particular ratios or global comps for the pitch checks or they needed expanded investor database.
So they are also able to prioritize those features or in universities, they are able to work with them for inclusion in their course work, right? So this helps us in sort of — this is the second way in which we are able to increase retention. So one is basically investing in data in those — for those customer segments, the launch — the second is basically launch of this vertical team and also adding the engagement layer on-top of it, right.
So by doing this, we have seen this number improve and that is basically our current also in terms of the strategy. Like if you look at just India wherein we worked last year, there you saw the net dollar retention increase, right, the retention increase.
So in India last year, it was slightly less than 100%. This year FY ’25 this was more than 100%. So we were able to sort of increase within just about three to four quarters and we were also able to see that in specific geographies wherein we work with.
So this is basically our plan, basically you know wherever you work by segment-by-segment and we are basically able to get it back to your historical average which has been around 103% to 105%.
Devanshi Kamdar
Okay. Thanks, Neha. Next question we’ll take from the Q&A box again from Akshay. Currently, traction is more focused on increasing penetration in different segments of clients. But how do you increase the number of logins and prices once that is achieved? Is there stickiness as customers might move to a rival product that is cheaper?
Neha Singh
Yeah. Yeah, thanks a lot, Akshay for the question. So the upgrade is basically fairly straightforward. So once you basically start working with the customer, you increase — you work towards increasing usage over there.
And then the other team basically also works towards selling them more licenses and increasing the penetration within the teams. And there, there are some strategies that have worked well.
So for instance, things like we give some temporary licenses to some part of the team members and in the next cycle, we are able to upgrade them or the second thing which has also worked is that you curb on lock-in sharing.
So sometimes there’s some log-in sharing which happens. And as soon as you curb that, then you’re able to have some upgrades through that. So there are few things which have worked and we probably plan to replicate it. For some of the accounts, for instance, we’ve been able to grow from like 5 lakh to 50 lakh within five to six years and that is not us doing a lot of effort.
You know, hopefully, once we do sort of more focused effort, we may we may be able to sort of shrink the time-based on how large the customers are. But this is something that we have anyways done with quite a lot of customers over-time or has also happened sort of organically with the customer.
So this is something that will probably replicate to these customer segment as well. But it may take some time, it may not happen immediately, it may take sort of some time.
Devanshi Kamdar
Okay. Next question is from Brad in the Q&A box. What is the average account of university and corporates? Are universities seem like a good opportunity. How are we scaling in terms of this opportunity? And what are the bottlenecks we are facing in terms of onboarding these type of customers?
Neha Singh
Right. So if you look at the average price point of the university, so this is — our average overall ASP is about 5 lakh or 5.2 lakh, universities maybe slightly lesser, maybe like closer to 5 lakh on an overall level, so there’s a whole range. So this is for most financial data platforms actually, this is the same strategy, like even if you look at any — most of the top universities would have a student or a discounted version from the large public market data platforms.
And this is a playbook that we’ve actually sort of taken from the large public market data platforms itself because a lot of times even when we were there in the different — in our schools or a big school, you would start using a platform for the first time through the universities.
And in our case, in fact, if you look at our customer-base, which is the investment — the investment people that have come to the investment industry or the M&A there. A lot of them actually graduate from the top 2000 universities globally.
So for us, actually, it’s a great marketing channel that we are able to sort of — they are able to hear the name for the first time and get familiar with them when they are in the college.
And for us, we’ve also had a few cases wherein, you know, the people actually knew about traction earlier, they joined the fund and then they bought the subscription when they — as soon as they joined the funds. So that just reinforces this. So in addition to being a basically a revenue channel, this is also a great marketing channel for us. That’s how we see it. And coming to what is the bottleneck of scaling. So I don’t think — I think universities are is working out very well. This was one of our oldest vertical teams which is there, which is about five to six quarters old.
There in just the last year, we’ve had more than 300% increase in the number of customers as well as more than 100% increase in the revenues, right? So we are very happy to see that we — the growth that we’ve seen from this verticals and it’s also very good locus that we may able to penetrate. So now this basically they have a sort of a map of about 2,000 plus universities and the team is basically just working towards that. So we don’t see any bottleneck. I think we continue to be excited about the results that we are seeing and the sort of the way going-forward?
Devanshi Kamdar
Okay. Thanks, Neha. Next question is from Prutri. What does the other income component consist of? Like is it a regular comp or any other extraordinary income limited to certain quarters?
Neha Singh
I’ll pass this question to Prashant
Prashant Chandra
Sure. All right. Hi,. I hope you’re doing well. So the other income that you see is a regular income, not necessarily anything particular to the quarter. So it has two components. One is the other income, which is sort of the interest coming from the bank FDs and deposits and sort of things.
And the bulk of it is like the gains and loss we sort of have it from the mutual fund investments because we have a sizable cash balance. So that is kind of invested in high-quality liquid funds and accordingly similar securities. So that has been consistent. I mean like in fact, it has been growing steadily on quarter-on-quarter basis. I hope I was able to answer your question probably.
Devanshi Kamdar
Okay. Next question is from Akash. Is Tractions management exploring potential collaborations with leading banks, financial institutions or asset managers in the US or Europe to strengthen brand credibility, build trust and enhance distribution channels. Neha, you are on-mute.
Neha Singh
Okay. Thanks. Yeah. Thanks so much. Thanks a lot, Akash for the question. So in terms of partnership, as I was mentioning, this is early days, but we are probably exploring partnership with some of the large data platforms or the financial data platforms which are there in specific geographies.
Our endeavor is basically some of them which have good footprint in terms of the of the sales teams that they have built-in certain geographies and they have a footprint of financial institutions that they work with. And these financial institutions, their customers are also now looking at private company data, right?
So this is something that they have heard multiple times from their customers. So we are basically working with a couple of them to actually do that. So maybe — so nothing is live as of now, but we are working towards it.
So maybe we’ll end-up closing one or two within this year to work on. And it will be exciting for us to see you know-how that sort of goes.
Devanshi Kamdar
Okay thanks I think this was this is probably the last question that we can take on. I will hand it over to you for closing remarks and then probably that can also bitch in you are on-mute.
Sidharth Agrawal
Sorry I was on-mute. What I was trying to say is that thank you very much to all of you for a very detailed and insightful presentation. I’ve attended almost 12 of your quarterly calls post listing. Besides that, we have hosted you so many times, but each time I learn three, four new things about your company.
So that’s the most interesting part of attending a presentation and our question-and-answers have been quite detailed and of course, management’s answers have also been as much detailed.
So thank you very much to you, Neha, Prashant, Abhishek, Krishna management team for a great and insightful presentation. Thank you very much to all our participants for your intelligent questions and thank you very much to Devanshi for hosting the call. I would like now like to hand it over to the management for their closing remarks time.
Neha Singh
Yeah. Thanks for that, yeah. Thanks,. Thanks a lot everyone for joining us today and for the questions. Hopefully, we were able to answer most of them in case there’s anything which we were not able to sort of address, please feel free-to write to us. We are at investor.relations@atraction.com or you can reach-out to or Abhishek.
Thanks again for joining us and hopefully you have a good rest of the day. Yeah. Thank you and we would love to host me. Thank you. Come down to Mumbai, we’ll arrange some investor sessions with all these clients of us. Yeah. Thank you, sir.
Abhishek Goyal
Thank you.
Prashant Chandra
Thank you. You.
Neha Singh
Thanks, everyone. Yeah. Thank you.