Fractal Analytics, India's first AI unicorn, plans ₹4,900cr IPO
What's the story
Fractal Analytics, the first artificial intelligence (AI) unicorn from India, is gearing up for an initial public offering (IPO) worth ₹4,900 crore ($555 million). The move comes as part of the company's strategy to raise funds. The IPO is likely to be launched as early as next month and could value the company at around $3 billion.
Offering details
IPO to include fresh shares and stake sale
The upcoming IPO will comprise fresh shares worth ₹1,280 crore and a stake sale of about ₹3,620 crore by existing investors. These include TPG Inc. and Apax Partners LLP. The company has already started meeting potential investors as part of its preparations for the share sale. However, it is important to note that these discussions are still ongoing and details such as valuation and timing could change.
Company history
Fractal Analytics's journey to unicorn status
Fractal Analytics was founded in 2000 by five Indian Institute of Management Ahmedabad graduates. The company achieved unicorn status in 2022. Of the original founders, only Group CEO Srikanth Velamakanni and CEO Pranay Agrawal remain with the company today, each holding stakes of around 10%. They don't plan to sell stakes in the upcoming IPO.
Advisory team
Advisors for the share sale
The share sale by Fractal Analytics is being advised by Axis Bank Ltd., Goldman Sachs Group Inc., Kotak Mahindra Capital Co., and Morgan Stanley. The move comes at a time when several firms are looking to go public in India after two successful IPOs this month that raised over $1 billion each. Proceeds from new listings in 2025 have already neared $16 billion, raising hopes that the year could surpass 2024's record of $21 billion.