Fractal, known as India’s first AI unicorn, may seek a valuation of at least $3.5 billion in the share sale, according to sources who requested anonymity due to the private nature of the discussions.

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

Fractal Analytics, a leading provider of artificial intelligence services, is contemplating an initial public offering (IPO) in Mumbai as early as November to raise $500 million, according to individuals familiar with the matter.

Fractal, recognized as India’s first AI unicorn, may aim for a valuation of at least $3.5 billion in the share sale, sources said, requesting anonymity as the discussions are confidential. The IPO could include both new and existing shares, with a potential listing as soon as the first quarter of 2025.

These discussions are ongoing, and the IPO's size and timing might change, the sources added.

A representative for Fractal did not immediately respond to a request for comment.

India has become a hub for dealmaking activity, with increasing interest from global investors. According to Bloomberg data, approximately $9 billion has been raised through IPOs in India this year.

Fractal, co-headquartered in Mumbai and New York, was co-founded in 2000 by five graduates from the Indian Institute of Management Ahmedabad. The startup achieved unicorn status in 2022, valued at over $1 billion. Three of the founders have since left the company, while co-founder and group CEO Srikanth Velamakanni and co-founder and Fractal CEO Pranay Agrawal each own about 10% of the shares.

Backed by private equity firms TPG Inc. and Apax Partners, Fractal reported $265 million in revenue and $8.9 million in earnings before interest, tax, depreciation, and amortization for the fiscal year ending March, according to filings.

Fractal employs over 4,500 people across 17 locations, including the UK, Singapore, the Middle East, Australia, India, and the US. Its client list features prominent names such as Alphabet Inc.’s Google, Unilever Plc, and Kraft Heinz Co.

Fractal's AI ventures include Asper.ai, Flyfish, and Qure.ai, a health-care startup providing tools to detect and manage tuberculosis, lung cancer, and stroke.

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