India’s first AI unicorn Fractal said to weigh $500 million IPO

Fractal Analytics, India’s pioneering AI unicorn, is reportedly planning to launch an initial public offering (IPO) in Mumbai as early as November, aiming to raise USD 500 million. Insiders, who preferred to remain anonymous due to the confidentiality of the discussions, suggest that Fractal could seek a valuation of at least USD 3.5 billion through this share sale. The IPO is expected to include both new and existing shares, potentially hitting the market in the first quarter of 2025.

While the final details regarding the IPO size and timeline are still under discussion and could change, the excitement around this development is palpable. Representatives from Fractal have yet to comment on the matter.

India has become a hotbed for IPO activity, with global investors showing a growing interest. This year alone, IPOs in the country have amassed around USD 9 billion, according to Bloomberg data.

Founded in 2000 by five alumni from the Indian Institute of Management Ahmedabad, Fractal Analytics now boasts dual headquarters in Mumbai and New York. The company achieved unicorn status in 2022, surpassing the USD 1 billion valuation mark. Although three of the original founders have since left, Co-founder and Group CEO Srikanth Velamakanni, along with Co-founder and CEO Pranay Agrawal, each retain about 10% ownership.

Fractal’s backers include notable private equity firms such as TPG Inc. and Apax Partners. For the fiscal year ending in March, the company reported revenues of USD 265 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 8.9 million.

With a workforce exceeding 4,500 employees spread across 17 locations, including the UK, Singapore, the Middle East, Australia, India, and the US, Fractal serves an impressive roster of clients. These include industry giants like Google (Alphabet Inc.), Unilever Plc, and Kraft Heinz Co.

Fractal’s AI portfolio features innovative ventures such as Asper.ai, Flyfish, and Qure.ai, the latter being a healthcare startup focused on detecting and managing conditions like tuberculosis, lung cancer, and stroke.

Also Read: PNB Launches QIP to Raise Up to Rs 5,000 Crore at Rs 103.75 per Share