IPO-bound AI company Fractal secures $170 million at $2.44 bn valuation

Fractal Analytics, an AI analytics company, has raised $170 million (around ₹1,461 crore), valuing it at $2.44 billion (₹20,978 crore). This was done through a secondary sale of 6% shares by its long-time investor, Apax Partners.

The round was participated in by 22 investors and funds managed or advised by Trust Investment Advisors, White Oak Capital, Gaja Capital, and Neo Asset Management.

The unicorn company is planning an IPO worth $400–$500 million which could push its valuation to nearly $3 billion.

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Fractal Analytics has appointed Morgan Stanley, Kotak Securities and Axis Securities as its bankers. The company is expected to file its draft red herring prospectus with the market regulator soon.

The upcoming IPO will include both primary and secondary share sales, with some existing investors planning to partially sell their stake.

According to sources, the fresh funds will be used to grow Fractal Analytics' generative AI services, boost research and development, expand globally, and repay part of its existing loans.

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About Fractal Analytics 

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics works in areas like computer vision, machine learning, quantum computing, cognitive automation, and conversational AI.

The U.S. is its largest market, contributing 70% of its revenue, followed by Europe (20%) and regions like Australia, the Middle East, and India (10%).

The company began its GenAI journey with products like Flyfish (a digital sales advisor), Fractal GPT (a conversational AI tool), and Arya (a data science agent). 

It recently built Kalaido.ai—India’s first text-to-image diffusion model—which creates high-quality images from text in both English and Indian languages. The launch is expected in two weeks.

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