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AI firm Fractal eyes $400-500 million IPO at $3-billion valuation

Economic Times · 3m

Fractal Analytics, an AI and analytics company, has hired Morgan Stanley, Kotak Mahindra Capital, and Axis Capital as bankers for its upcoming IPO. The IPO is estimated to be worth $400-500 million and could value the company at around $3 billion. The draft red herring prospectus is expected to be submitted to SEBI by late September. The IPO will include both primary and secondary share sales, allowing existing investors such as Apax Partners and Khazanah Nasional Berhad to partially sell their stake. The funds raised will be used for expanding the company's GenAI services portfolio, research and development, global expansion, and pre-payment of existing loans. Fractal Analytics, founded in 2000, focuses on AI, machine learning, and computer vision technologies. In FY23, the company generated operating revenues of Rs 1,985.4 crore and recorded a net profit of Rs 194 crore.