Tech giant Fractal, a renowned AI unicorn, submits IPO request for an outstanding sum of $560 million.
Fractal Analytics, an artificial intelligence and analytics services provider, has filed for an initial public offering (IPO) in Mumbai, aiming to raise approximately $560 million (about Rs 4,900 crore). This move could value the company at over $3.5 billion, making it one of the largest IPOs in India's AI sector.
The IPO consists of a fresh issue of shares worth Rs 1,279 crore and an offer for sale by existing shareholders amounting to Rs 3,621 crore. Major shareholders selling include private equity firms TPG Inc. and Apax Partners, as well as two prominent angel investors. However, founders Srikanth Velamakanni (Group CEO) and Pranay Agrawal (CEO), each owning about 10%, are not selling any shares in the IPO.
Kotak Mahindra Bank, Morgan Stanley, Axis Capital, and Goldman Sachs Group Inc. are the arrangers for Fractal Analytics' IPO.
Founded in 2000 and headquartered in both Mumbai and New York, Fractal Analytics provides AI and analytics services to major global clients such as Citigroup, Google, Unilever, and Nestle. The company reported revenue of around Rs 27.65 billion for the fiscal year ending March 2025, a 25.9% growth year-over-year, and a profit of Rs 220 million.
Fractal Analytics specializes in AI-driven enterprise solutions improving operational efficiency, product design, and supply chains. The company has also partnered with OpenAI for generative AI applications.
This IPO represents a significant milestone for India’s AI industry and is expected to attract strong investor interest due to Fractal's growth, client base, and strategic importance in the AI sector. The IPO is planned amid a strong rebound expected in the Indian IPO market during 2025’s second half, with up to $18 billion expected to be raised in the second half of the year.
Fractal Analytics, India's first AI unicorn, is seeking to capitalize on investor demand for the red-hot sector and the country's adoption of consumer technologies. The company has submitted bids to develop an indigenous health-care large language model and a large reasoning model under the IndiaAI Mission, a government initiative to help develop homegrown AI technologies.
Fractal Analytics' global customer base includes Citigroup Inc., Royal Philips NV, and Nestle SA, among others. The company was co-founded in 2000 by five graduates of the Indian Institute of Management Ahmedabad.
[1] The Economic Times
[2] Business Standard
[3] LiveMint
[4] Fractal Analytics
[5] IndiaAI Mission
- Fractal Analytics, aims to raise approximately $560 million in an initial public offering (IPO) in Mumbai, signaling strong investor interest in the red-hot AI sector and indicating the company's potential growth and importance within the industry.
- The IPO, planned amid a strong rebound expected in the Indian IPO market during 2025’s second half, shows that subscription to tech-focused companies, like Fractal Analytics, which specializes in AI-driven enterprise solutions, could significantly contribute to the planned $18 billion in expected IPO proceeds for the second half of the year.
- As Fractal Analytics, India's first AI unicorn, bids to develop indigenous health-care large language models and large reasoning models under the IndiaAI Mission, the company demonstrates its commitment to the economy by investing in homegrown artificial-intelligence technologies, further enhancing the country's technological capabilities and position in the global market.
