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

Fractal Analytics, India’s first AI unicorn, is planning an IPO in Mumbai to raise $500 million, aiming for a valuation of at least $3.5 billion. The company, co-founded by IIM Ahmedabad graduates, has over 4,500 employees and notable clients like Google and …

Fractal Analytics, a provider of artificial intelligence services, is considering filing for an initial public offering in Mumbai as soon as November to raise $500 million, according to people familiar with the matter.

Fractal, known as India’s first AI unicorn, may seek a valuation of at least $3.5 billion in the share sale, the people said, asking not to be identified because the deliberations are private. The offering may include both new and existing shares, the people said, adding that a listing could take place as soon as the first quarter of 2025.

Discussions are ongoing and the size of the IPO and its timing could change, said the people.

A representative for Fractal didn’t immediately respond to a request seeking comment.

India has turned into a hotspot for dealmaking activity amid increasing appetite from global investors. About $9 billion has been raised via IPOs in the South Asian nation this year, according to data compiled by Bloomberg.

Fractal, dual-headquartered in Mumbai and New York, was co-founded by five graduates of the Indian Institute of Management Ahmedabad in 2000. The startup turned a unicorn, valued at over $1 billion, in 2022. Three of the founders have since exited. Co-founder and group Chief Executive Officer Srikanth Velamakanni and co-founder and Fractal CEO Pranay Agrawal own about 10% shares each.

The company, whose backers include private equity firms TPG Inc. and Apax Partners, reported $265 million in revenue and earnings before interest, tax, depreciation and amortization of $8.9 million in the year ended March, according to filings.

Fractal has over 4,500 employees in 17 locations including the UK, Singapore, Middle East and Australia, as well as India and the US. Its clients include Alphabet Inc.’s Google, Unilever Plc and Kraft Heinz Co.

Its AI businesses include Asper.ai, Flyfish as well as Qure.ai, a health-care startup with tools that help detect and manage tuberculosis, lung cancer and stroke.

(You can now subscribe to our ETMarkets WhatsApp channel)