NewsIPOFractal Analytics Files for ₹4,900 Crore IPO in Mumbai, Valuation Could Exceed ₹29,000 CroreFractal Analytics Files for ₹4,900 Crore IPO in Mumbai, Valuation Could Exceed ₹29,000 Crore
Fractal Analytics, India's first AI unicorn, has filed for an IPO in Mumbai, aiming to raise ₹4,900 crore ($560 million). The offering includes a fresh issue of shares worth ₹1,279 crore and an offer for sale by existing investors for ₹3,621 crore. The company, valued at over ₹29,000 crore ($3.5 billion), reported a revenue of ₹2,765 crore with 25.9% YoY growth and a profit of ₹22 crore. Co-founders Srikanth Velamakanni and Pranay Agrawal, each owning 10% of the company, are not selling their shares in the IPO. The offering is being managed by Kotak Mahindra Bank, Morgan Stanley, Axis Capital, and Goldman Sachs.
*this image is generated using AI for illustrative purposes only.
India's first AI unicorn, Fractal Analytics, has taken a significant step towards going public by filing for an Initial Public Offering (IPO) in Mumbai. The company is eyeing a substantial ₹4,900 crore ($560 million) offering, which could potentially value the AI and analytics services provider at over ₹29,000 crore ($3.5 billion).
IPO Structure and Existing Investors
The IPO structure includes:
- Fresh issue of shares worth ₹1,279 crore
- Offer for sale by existing investors amounting to ₹3,621 crore
Notable investors participating in the offer for sale include global private equity firms TPG Inc. and Apax Partners.
Company Background and Growth
Fractal Analytics, co-founded in 2000, achieved unicorn status in 2022, marking its position as a leader in the AI and analytics space. The company has built an impressive client roster, serving global giants such as Citigroup, Royal Philips, and Nestle.
Financial Performance
The company's financial performance underscores its growth trajectory:
| Metric | Amount | YoY Growth |
|---|---|---|
| Revenue | ₹2,765 crore | 25.9% |
| Profit | ₹22 crore | - |
Fractal Analytics reported a revenue of ₹2,765 crore, marking a robust 25.9% increase from the previous year. The company also posted a profit of ₹22 crore.
Leadership and Ownership
The current leadership of Fractal Analytics includes:
- Srikanth Velamakanni: Group CEO
- Pranay Agrawal: CEO
Both Velamakanni and Agrawal each own approximately 10% of the company and have chosen not to sell their shares in the upcoming IPO, signaling their confidence in the company's future prospects.
IPO Arrangements
The IPO is being arranged by a consortium of leading financial institutions:
- Kotak Mahindra Bank
- Morgan Stanley
- Axis Capital
- Goldman Sachs
These institutions will play a crucial role in managing and facilitating the public offering process.
Market Impact
As India's first AI unicorn to go public, Fractal Analytics' IPO is likely to draw significant attention from both domestic and international investors. The offering could serve as a benchmark for the valuation of AI and analytics companies in the Indian market and potentially pave the way for more tech unicorns to consider public listings.
The successful completion of this IPO could further solidify India's position as a growing hub for AI and analytics talent and innovation on the global stage.
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