An important milestone is about to be reached by Fractal Analytics, the innovative artificial intelligence (AI) services provider from India. The company, touted as the country’s first AI unicorn, is reportedly preparing to register for an initial public offering (IPO) in Mumbai as soon as November 2024. Fractal intends to fund $500 million, which may put its valuation at over $3.5 billion. This is a big deal for India’s AI and tech scene as well as for the company.
Much interest has been generated by the expected initial public offering (IPO), which reports indicate will comprise both new and existing shares. The company may launch its shares in the first quarter of 2025, a historic event for India’s IT industry if all goes according to plan. Through the IPO, India’s standing as a hub for AI innovation might be further cemented and Fractal could receive the funding it needs to expand internationally.
One thing is certain: Fractal’s public listing would be a significant advancement in India’s rapidly expanding AI business. The deal is still in discussions, and the size and timing of the IPO could vary.
Credits: Money Control
Fractal Analytics was co-founded in 2000 by five Indian Institute of Management (IIM) Ahmedabad graduates. Over the years, the company has established itself as a leader in artificial intelligence, data science, and advanced analytics services, serving a diverse clientele that includes global giants such as Google, Unilever, and Kraft Heinz. In 2022, the company achieved unicorn status with a valuation above $1 billion, thereby consolidating its standing as one of the leading software corporations in India.
Only two of the original five founders—group CEO Srikanth Velamakanni and CEO Pranay Agrawal—are still actively involved with Fractal today, with each owning about 10% of the business. The company’s current supporters include notable private equity firms including TPG Inc. and Apax Partners, which have helped it grow into a global operation with 17 offices across the world and over 4,500 employees.
Fractal’s upcoming IPO is poised to have a far-reaching impact, not just on the company but on the broader AI landscape in India and beyond. Here’s why:
Strengthening India’s AI Leadership
International investors looking to close transactions are finding India increasingly appealing, and Fractal’s IPO is a big step toward positioning India as a leader in AI innovation. The company’s success could inspire other domestic AI companies to aim for international growth and public listings. According to Bloomberg data, as of 2024, initial public offerings (IPOs) in India’s startup sector have raised $9 billion. Fractal’s move would encourage more investors to focus on AI-driven companies, strengthening India’s position as a significant player in the global AI race.
Attracting Global Investment in AI
The success of Fractal’s IPO could also function as a magnet for greater foreign direct investment into India’s AI industry. Given the company’s proven track record of providing AI services to significant foreign clients, a successful public offering might emphasize India’s ability to emerge as a global center for cutting-edge artificial intelligence technologies. Global venture capitalists and investors will probably take notice, creating new funding opportunities for AI businesses in the nation.
Scaling AI Applications Across Industries
Fractal’s company is already multi-faceted, with important AI solutions across sectors like healthcare, retail, and financial services. Its businesses include Asper.ai, focusing on enhancing supply chain efficiency, Flyfish, which advances decision-making in the financial sector, and Qure.ai, which specializes in AI-driven healthcare solutions such as early diagnosis of diseases like tuberculosis and lung cancer. With the money raised from an IPO, Fractal will probably be able to expand these products even more and develop new AI applications that have the potential to completely transform a variety of industries’ business practices.
