India's First AI Unicorn Fractal Considers $500 Million IPO

India's First AI Unicorn, Fractal Eyes $500 Mn IPO

Fractal is considering filing its DRHP with Sebi in November. Fractal, India's first AI unicorn, is reportedly planning to raise $500 million through an initial public offering (IPO) at a valuation of at least $3.5 billion, according to sources. The startup, known for its AI and advanced analytics solutions, is expected to pursue a public listing in the first quarter of 2025. The IPO will likely involve a combination of fresh equity and an offer for sale and Fractal is considering filing its DRHP with Sebi in November. This news follows earlier reports suggesting Fractal was preparing to file draft IPO papers in August, aiming to raise approximately $600 million at a $3 billion valuation. Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal, and Ashwath Bhat, Fractal provides AI solutions to numerous Fortune 100 companies. Among its products is Qure.ai, a tool for medical imaging diagnostics. Most recently, the company launched its medical chatbot Vaidya.ai. Fractal became a unicorn in 2022 after securing $360 million from TPG Capital. To date, the startup has raised $685 million from investors, including TPG Capital, Khazanah Nasional, and Apax Partners. Fractal employs over 4,500 people across 17 locations, including the UK, Singapore, the Middle East, Australia, India, and the US. Fractal's IPO plans align with a broader trend of tech startups in India seeking public listings, taking advantage of the ongoing bull run in the Indian equities market.

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 Unilever. 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.

India's First AI Unicorn Fractal Said to Weigh $500 Million IPO

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.

SaaS Unicorn Fractal Eyes $500 Mn IPO, To File DRHP By November

Fractal offers AI and advanced analytics solutions to scores of Fortune 100 companies Amid the ongoing initial public offering (IPO) boom in the country, artificial intelligence-powered SaaS unicorn Fractal is considering filing its draft red herring prospectus (DRHP) with SEBI as soon as November. India's first AI unicorn may seek to raise $500 Mn through its IPO at a valuation of at least $3.5 Bn, as it readies a cash chest in a highly competitive market, Bloomberg reported, citing sources. Fractal's IPO will likely be a combination of fresh issue of equity shares and offer for sale, with the startup eyeing a public listing in the first quarter of 2025. Inc42 has reached out to Fractal for comments on the development. The story will be updated based on the response. The development comes almost a couple of months after it was reported that Fractal could file its draft IPO papers in August to raise around $600 Mn. The startup was then said to be eyeing a valuation of $3 Bn for its IPO. Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal and Ashwath Bhat, Fractal offers AI and advanced analytics solutions to scores of Fortune 100 companies. Its offerings include Qure.ai, which assists in medical imaging diagnostics. Fractal also operates platforms such as Theremin.ai, Eugenie.ai and Samya.ai. It is pertinent to note that Fractal entered the unicorn club in 2022 after raising $360 Mn from TPG Capital. The startup has raised $685 Mn in funding till date and counts the likes of TPG Capital, Khazanah Nasional and Apax Partners among its backers. Fractal's potential bid for an IPO comes at a time when a number of new-age tech startups are lining up to go public amid the bull run in the Indian equities market. At least 10 Indian startups, including the likes of FirstCry, Ola Electric, Unicommerce, ixigo -- have already made their public listings this year as compared to just 5 startups last year.