Flipkart founders back Tracxn’s start-up funding platform - plans to help 50 start-ups a year
Bengaluru:Tracxn, a data analytics firm that provides financial information on start-ups, is launching a start-up incubator called TracxnLabs, backed by Flipkart co-founders Sachin Bansal and Binny Bansal, to invest in new companies and help them grow.
"With the current pool of capital, we can easily work with 50 start-ups a year. As our capital pool increases, we can work with a much larger set of start-ups," Tracxn co-founder Neha Singh said.
With TracxnLabs, the company plans to use its large database and research to help entrepreneurs with start-up ideas and funding trends. Tracxn aims to help speed up the process of opportunity identification and launching start-ups.
"There are entrepreneurs who start up after identifying a gap in the market or an opportunity, and there are entrepreneurs who don't necessarily seek to address a gap," said Avinash Raghava, co-founder at iSPIRT, a software products lobby group. "The initiative by Tracxn would be very helpful, especially for the first category of entrepreneurs as it's always useful to know about what is selling, what are the market trends, etc. The success of such an initiative depend on the quality and depth of data, of course."
The Bansals, in their personal capacity, along with other individual investors, helped contribute $10 million to launch TracxnLabs, which will invest in start-ups and provide the initial minimum viable product capital in the range of $20,000-$50,000.
"As Tracxn's research became intensive and comprehensive in select sectors, we began to observe large gaps in the market," Tracxn co-founderAbhishek Goyal said. "In parallel, we shared our research with a few entrepreneurs who found it immensely helpful in refining their initial idea. Over time it became apparent we could contribute to entrepreneurs. Hence, we decided to scale this initiative."
Goyal said TracxnLabs has started working with more than 10 start-ups and will announce deals over the coming months in sectors such as online rentals, lending and food technology.
Goyal was the first investor in Flipkart via his previous employer Accel Partners. He also ran the beauty and fashion online retailer Urban Touch from 2011 to 2013, until its sale to rival Fashionandyou.