India's First AI Unicorn Fractal Files For $560-Million IPO

Fractal Analytics, a provider of artificial intelligence and analytics services, filed for an initial public offering in Mumbai that could value the company at more than $3.5 billion.

Proceeds from the IPO could reach about 49 billion rupees (or about $560 million), according to its listing document published Tuesday. The company plans to sell fresh shares worth 12.79 billion rupees while backers including TPG Inc. and Apax Partners and two prominent angel investors intend to sell 36.21 billion rupees of stock.

Fractal, India’s first AI unicorn, is seeking to capitalize on investor demand for the red-hot sector as well as the country’s adoption of consumer technologies. India’s IPO market is set for a strong rebound after a slow start for the year, with up to $18 billion expected to be raised in the second half of 2025, according to Jefferies Financial Group.

Co-founded in 2000 by five graduates of the Indian Institute of Management Ahmedabad, the startup’s valuation topped $1 billion in 2022. Three of the founders have since exited, leaving Group Chief Executive Officer Srikanth Velamakanni and Fractal CEO Pranay Agrawal at the helm. The men, who each own about 10% of the company, aren’t selling shares in the IPO.

Fractal, whose global customer base includes Citigroup Inc., Royal Philips NV and Nestle SA, offers AI products and services to help enterprises improve operational efficiency, design new products, and build sustainable supply chains. It has partnered with OpenAI, using its models to build generative AI solutions.

Fractal, which is dual-headquartered in Mumbai and New York, reported revenue of 27.65 billion rupees for the year ending March 2025, up 25.9% from the previous 12 months. It earned a profit of 220 million rupees.

The company has submitted bids to develop an indigenous health-care large language model as well as a large reasoning model under the IndiaAI Mission, a government initiative to help develop homegrown AI technologies.

Kotak Mahindra Bank, Morgan Stanley, Axis Capital and Goldman Sachs Group Inc. are the arrangers for the IPO.