Fractal To File DRHP By September For $600 Mn IPO, Eyes $3 Bn Valuation

SaaS unicorn Fractal reportedly plans to file its draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) by the end of August or early September.

The enterprise tech startup is looking to list on the Indian bourses at a valuation of around $3 Bn, Moneycontrol reported citing sources. 

As per the report, the initial public offering (IPO) will likely be in the range of $500 Mn to $600 Mn and will have a “large share” of secondary share sale by existing investors.

The report said that as the quantum of the secondary sale is yet to be finalised, the total size of the IPO is still unclear.

Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal and Ashwath Bhat, Fractal offers artificial intelligence and advanced analytics solutions to Fortune 500 companies. Backed by the likes of TPG Capital, Khazanah Nasional and Apax Partners, the startup has raised $685 Mn in funding till date. 

It turned unicorn in 2022 after private equity (PE) firm TPG pumped in $360 Mn at a valuation of over $2 Bn. 

Fractal turned profitable in the financial year 2022-23 (FY23), posting a profit of INR 194.4 Cr during the period as against a loss of INR 148.4 Cr in the previous fiscal year. Operating revenue jumped 53% to INR 1,985.4 Cr from INR 1,295.3 Cr in FY22. 

Fractal is looking to go public at a time when Indian startups are making a beeline for the bourses on the back of positive market sentiment, ample liquidity and growing appetite for new-age tech stocks. 

While D2C startup Menhood listed on NSE’s small and medium enterprise (SME) platform NSE Emerge earlier this month at a premium of 28% over its issue price, coworking startup Awfis and traveltech startup ixigo too saw bumper listings at premiums of 13.5% and 48.5%, respectively on the NSE.

Meanwhile, electric vehicle major Ola Electric’s IPO will open for retail subscription on August 2. Segment giants such as foodtech major Swiggy and omnichannel marketplace FirstCry are also eyeing a public listing. 

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