Srikanth Velamakanni, Co-founder & Group CEO, Fractal
| Photo Credit:
Fractal website

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 ₹4,900 crore (or about $560 million), according to its listing document published Tuesday. The company plans to sell fresh shares worth ₹1,279 crore, while backers including TPG Inc. and Apax Partners and two prominent angel investors intend to sell ₹3,621 crore of stock.

Fractal, India’s first AI unicorn, is seeking to capitalise 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 start-up’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 per cent 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 ₹2,765 crore for the year ending March 2025, up 25.9 per cent from the previous 12 months. It earned a profit of ₹22 crore .

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.

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Published on August 13, 2025