FRACTAL Analytics, a provider of artificial intelligence (AI) services, is considering filing for an initial public offering (IPO) in Mumbai as soon as November to raise US$500 million, sources said.
Fractal, known as India’s first AI unicorn, may seek a valuation of at least US$3.5 billion in the share sale, they added, asking not to be identified because the deliberations are private.
The offering may include both new and existing shares, and a listing could take place as soon as the first quarter of 2025, the sources noted.
Discussions are ongoing and the size of the IPO and its timing could change.
A representative for Fractal did not immediately respond to a request seeking comment.
India has turned into a hotspot for deal-making activity amid increasing appetite from global investors. About US$9 billion has been raised through IPOs in the South Asian nation this year, Bloomberg data showed.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Fractal, dual-headquartered in Mumbai and New York, was co-founded by five graduates of the Indian Institute of Management Ahmedabad in 2000.
The startup became a unicorn, valued at more than US$1 billion, in 2022. Three of the founders have since exited. Co-founder and group chief executive officer Srikanth Velamakanni, and co-founder and Fractal CEO Pranay Agrawal each own about 10 per cent of shares.
The company, whose backers include private equity firms TPG and Apax Partners, reported US$265 million in revenue, and earnings before interest, tax, depreciation and amortisation of US$8.9 million in the year ended March, according to filings.
Fractal has over 4,500 employees in 17 locations including the UK, Singapore, Middle East and Australia, as well as India and the US. Its clients include Alphabet’s Google, Unilever and Kraft Heinz.
Its AI businesses include Asper.ai, Flyfish, as well as Qure.ai, a healthcare startup with tools that help detect and manage tuberculosis, lung cancer and stroke. BLOOMBERG
