Fractal Analytics to Raise $500M in IPO, Aiming for $3.5B Valuation as India’s First AI Unicorn

Fractal Analytics, a multi-national Artificial Intelligence company recognised as India’s first AI unicorn, with dual headquarters in Mumbai and New York, will file for an IPO in November to raise $500 million in Mumbai.

With a $500 million IPO, the company is eyeing at least a $3.5 billion valuation. The offering will include both new and existing shares, according to Bloomberg. However, discussions are still at a premature stage, and its exact size and timing are subject to change. 

Currently, Srikant Velamakanni and Pranay Agarwal, both co-founders, hold approximately 10% of the company.

Fracture raised $360 million in its last round of funding in 2022 from the TPG group and entered the unicorn club.

Other investors of Fracture Analytics include Apax, Khazanah Nasional Berhad, and Aimia.

As per recent filings, Fractal clocked USD 240 million in revenue and USD 23 million in profit as of FY23. 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 Analytics was founded in the year 2000 by five IIM Ahmedabad graduates. Fractal Analytics Inc. provides analytics solutions.

The company offers customer relationship management analytics, marketing modelling, business analysis, risk analysis, and other services, its clients include Fortune 100 companies including Google, Unilever, and Kraft Heinz Co.

Fractal Analytics serves clients in the financial services, insurance, and retail markets worldwide. Fractal’s businesses include Crux Intelligence (AI-driven business intelligence), Eugenie.ai (AI for sustainability), Asper.ai (AI for revenue growth management), and Senseforth.ai (conversational AI for sales and customer services).

Fractal analytics also incubated Qure.ai (a leading player helping radiologists detect tuberculosis and lung cancer). Fractal currently has 4000+ employees across 16 global locations, including the United States, UK, Ukraine, India, Singapore, and Australia.

Fractal Analytics’ upcoming IPO will bring substantial benefits to India. As Fractal expands, it will create more job opportunities, which will help in employment growth.

Success stories like Fractal’s can position India as a global hub for AI and technology innovation that will attract more startups and tech giants. Overall, Fractal’s IPO will have a positive effect on India’s tech ecosystem and economy.

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