Tag Archives: India

The Tracxn IPO is a playbook for a true global tech play from India!

Tracxn went public today… congrats to the founders, employees & investors!

It’s a small personal milestone also. First angel –>IPO for me (I angel invested in Tracxn in 2015-16)…. & chose not to sell in the pre-IPO window:) Besides, I’m a regular user of the platform & can vouch for its utility!

But what really makes Tracxn stand out? – It’s a true/rare global tech play from India – IPOed in India, HQ/OPs in India, but main market is US & Europe!

Most folks in the tech ecosystem know Tracxn, but to newcomers – Tracxn is building a “Bloomberg Terminal for Private Markets”. Public markets have all their data, analyses, trends, and reports out in the open, but that’s not the case with private markets (VC/PE/Angel). This report does a good job of explaining the position.

You can’t publicly find hard numbers or verifiable figures to base your decisions on… everyone is trying to guess and make judgments in the absence of data. That’s where companies like Tracxn come in – they collate data from a bunch of diff sources & create a dashboard that they sell.

The Tracxn IPO is significant for the Indian tech ecosystem –

1) Headquartered in India, but 70% of revenues from US & Europe – true global play!
2) It’s a software driven business (think MARGINAL COST = ZERO), hence lightweight & scalable without huge investments
3) Raised VC $$, but not crazy levels (think #Realistic #Valuation)
4) $8-10MN runrate & profitable (or knocking on those doors)
5) First-mover advantage (think #DataIsTheNewOil)

As @MohapatraHemant (from LightSpeed Ventures) points out in his tweet, this isn’t a case where a big chunk of the value discovery has already happened in the private markets (by VCs). It’s a relatively early IPO, where the company will grow & reward investors in the public space.

Indian stock markets have recently witnessed a string of grossly overvalued tech/ecommerce IPOs that make them question the very rationale of the Silicon Valley originated VC playbook/model. IPOs like Tracxn can help soothe such misgivings & help folks internalize how it really works!


Originally posted on Twitter https://twitter.com/amitranjan/status/1582996280443170816

Scrabulous taken off Facebook and what it means for developers…

The news is probably stale now: Scrabulous has been taken off Facebook after being sued by Hasbro, the company that owns the IP rights for Scrabble. As I wrote in my previous post just a few days back, the writing was clearly on the wall. Techcrunch reports that Scrabulous is now inaccessible to people in the US & Canada. Initially it was conjectured that Facebook took this decision, now it appears that the application was pulled down by its creators and not Facebook, which is trying to be neutral between the two parties. I am sure this is not the end of the story for Scrabulous…

So what are the lessons here for others to take away? Here’s what’s top of my mind:

Imitation V/s Innovation: Immitation has always been a legitimate part of innovation. Much of what the world regards as innovation has its origin in trying to copy what others are doing. But the catch is that you should not just copy; you also need to improve, to improvise, to add maybe a new dimension or a new use-case. If that happens, the imitation gets legitimacy as a stepping stone in the creation of something that the world would not have otherwise. Scrabulous probably fails on that count… it is simply a web based version of Scrabble; they probably innovated in terms of a new distribution channel for the game (which is not insignificant), but not in terms of the core concept.

Tactics can undo your Strategy: I think the Scrabulous founders made a mistake by naming their application “Scrabulous”, which is clearly a derivative of Scrabble. From a legal standpoint, this establishes intent. People who are making strategic decisions about building products & services that are “me too” or closely resemble other popular concepts are advised not to repeat this tactical mistake – pl avoid name extensions or derivatives.

The Social Graph Application Platform: This is a good example of how fickle social graph applications can be to its developers. The end-users don’t belong to the application developers.. they belong to the platform. Having a steady base of users that you acquired on your own puts you in a commanding position, and there is no substitute for it.

Mass User Exodus Case Study: Scrabulous could be a defining case study in whether mass exodus of users can happen from one product to another, if one suddenly becomes inoperational due to some reasons. In this case, Scrabulous and its equivalent app from Hasbro are almost identical, except their ownership.

From a personal standpoint, this is an acid test for the Kolkata based creators of Scrabulous. They have been smart enough to create an additive “pass-time” for millions of people (albeit on a borrowed concept); lets keep our fingers crossed that they bounce back from this setback.

Update: Scrabulous is now available in a new avatar on Facebook. Its called Wordscraper and it has cosmetic changes from the previous design. Techcrunch reports – “….When Scrabulous was taken down, it had half a million daily active users and Hasbro’s/Electronic Arts’ official Facebook Scrabble game had only about 15,000. Two days later, the official Scrabble beta is up to 63,000 daily active users. Wordscraper has 3,600 daily active users. Now the race is on. Where will the bulk of Scrabulous fans go…. “