India's 1st AI unicorn Fractal Analytics plans $500 million IPO
What's the story
Fractal Analytics, a leading provider of artificial intelligence (AI) services, is planning to file for an initial public offering (IPO) in Mumbai. The company aims to raise $500 million through this process as early as November, according to Bloomberg. Fractal, recognized as India's first AI unicorn, is seeking a valuation of at least $3.5 billion in the share sale.
Offering specifics
IPO details and potential timeline
The proposed IPO by Fractal could include both new and existing shares. If all goes according to plan, the listing could occur as early as the first quarter of 2025. However, discussions are still ongoing and both the size of the IPO and its timing are subject to change.
Company profile
Fractal's journey and financial performance
Fractal was established in 2000 by five graduates of IIM Ahmedabad, and is dual-headquartered in Mumbai and New York. The company achieved unicorn status in 2022, with a valuation exceeding $1 billion. As per recent filings, Fractal clocked $265 million in revenue and earnings, before interest, tax, depreciation, and amortization (EBITDA) of $8.9 million for the year ending March.
Stakeholders
Founders and investors
Currently, Srikanth Velamakanni, co-founder and group Chief Executive Officer (CEO), and Pranay Agrawal, co-founder and Fractal CEO, each hold approximately 10% of the company's shares. Three of the original founders have since left the company. The firm's financial backing comes from private equity firms TPG Inc and Apax Partners. Fractal has more than 4,500 employees in locations across Singapore, the UK, Middle East, Australia, India and the US. Its clients include Google, Unilever Plc, and Kraft Heinz Co.