India’s First AI Unicorn Fractal Analytics Files for $560 Million IPO
The initial share sale is likely to value India’s first artificial‑intelligence unicorn at over $3.5 billion
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Fractal Analytics, widely regarded as India’s first artificial‑intelligence unicorn, has submitted its draft red herring prospectus (DRHP) to Sebi for an initial public offering (IPO) valued at ₹4,900 crore (about $560 million).
The offering comprises a fresh equity issuance of ₹1,279.3 crore and an offer‑for‑sale of ₹3,620.7 crore, with both components aimed at facilitating a December listing on the NSE and BSE.
If successfully priced, the IPO would value Fractal at over $3.5 billion, according to Bloomberg.
The valuation marks a leap from its previous estimated $2.4 billion value, following a $170 million secondary share sale led by Apax Partners earlier this summer.
Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal, and others, Fractal began as a data-analytics consultancy before moving into AI-driven decision support for global enterprises.
Its offerings now span AI-enabled forecasting, personalized marketing, healthcare diagnostics, and supply-chain optimization, delivered through platforms such as Qure.ai for radiology AI, Theremin.ai for asset management, and Eugenie.ai for sustainability monitoring.
Earlier this year, Apax led a $170 million secondary sale that valued Fractal at around $2.4 billion, setting the stage for this IPO, which could push the valuation above $3.5 billion.
For FY25, Fractal posted a revenue of ₹2,765 crore, up 25.9% year-on-year, and a net profit of ₹220 crore, reversing a ₹55 crore loss the previous year. It employs over 4,500 people worldwide, with delivery centers in India, the US, the UK, Australia, Singapore, Ukraine, and Canada.
The IPO will allow Apax to sell shares worth about ₹1,462 crore and TPG to offload roughly ₹1,999 crore, alongside smaller exits from the GLM Family Trust and early angel investor Rao Remala.
While the OFS component dominates, the fresh capital will be used for growth initiatives, technology investments, and potential acquisitions.
Fractal’s public market debut will be a test of investor appetite for AI-native firms in India.
The country’s listed tech universe is dominated by IT services firms such as Infosys, TCS, and Wipro, with few pure-play AI companies. Analysts said the deal could serve as a benchmark for future valuations in the sector.
The company’s client base includes more than 100 Fortune-500 firms across financial services, retail, healthcare, and technology sectors.
Fractal became a unicorn in January 2022 after raising $360 million from TPG Capital Asia at a valuation above $1 billion.
Apax Partners later acquired a significant stake through Quinag Bidco in 2019.
