India’s first AI unicorn Fractal eyes $500 mn IPO: report

Fractal Analytics, India’s first artificial intelligence (AI) unicorn, is looking to raise $500 million from an initial public offering (IPO), Bloomberg reported, citing people familiar with the matter.

The AI services provider may seek a valuation of up to $3.5 billion in the IPO, which may include both new and existing shares, the report said, with a listing likely by the January-to-March quarter of 2025.

Fractal, which operates out of Mumbai and New York, was co-founded by five graduates of the Indian Institute of Management-Ahmedabad in 2000. It turned unicorn–a company with a valuation of $1 billion and above–in 2022.

Three co-founders have since exited, with group chief executive officer (CEO) Srikanth Velamakanni and Fractal CEO Pranay Agrawal currently owning about 10% shares each.

The startup, whose clients include Google and Unilever, employs more than 4,500 across 17 global offices, including Singapore, the Middle East and Australia.

The company slew of AI products include Asper.ai, Flyfish and Qure.ai, a health-care startup.

The firm, which is backed by private equity firms TPG Inc. and Apax Partners, posted a revenue of $265 million and earnings before interest, tax, depreciation and amortization, or Ebitda, of $8.9 million in the year to March, company filings showed.