SaaS Unicorn Fractal Eyes $500 Mn IPO, To File DRHP By November

Amid the ongoing initial public offering (IPO) boom in the country, artificial intelligence-powered SaaS unicorn Fractal is considering filing its draft red herring prospectus (DRHP) with SEBI as soon as November.

India’s first AI unicorn may seek to raise $500 Mn through its IPO at a valuation of at least $3.5 Bn, as it readies a cash chest in a highly competitive market, Bloomberg reported, citing sources.

Fractal’s IPO will likely be a combination of fresh issue of equity shares and offer for sale, with the startup eyeing a public listing in the first quarter of 2025.

Inc42 has reached out to Fractal for comments on the development. The story will be updated based on the response.

The development comes almost a couple of months after it was reported that Fractal could file its draft IPO papers in August to raise around $600 Mn. The startup was then said to be eyeing a valuation of $3 Bn for its IPO.

Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal and Ashwath Bhat, Fractal offers AI and advanced analytics solutions to scores of Fortune 100 companies. Its offerings include Qure.ai, which assists in medical imaging diagnostics. Fractal also operates platforms such as Theremin.ai, Eugenie.ai and Samya.ai.

It is pertinent to note that Fractal entered the unicorn club in 2022 after raising $360 Mn from TPG Capital.

The startup has raised $685 Mn in funding till date and counts the likes of TPG Capital, Khazanah Nasional and Apax Partners among its backers.

Fractal’s potential bid for an IPO comes at a time when a number of new-age tech startups are lining up to go public amid the bull run in the Indian equities market. 

At least 10 Indian startups, including the likes of FirstCry, Ola Electric, Unicommerce, ixigo — have already made their public listings this year as compared to just 5 startups last year.

Earlier this week, MobikWik also received the approval from SEBI for its INR 700 Cr IPO. Meanwhile, the likes of Swiggy, Ecom Express, BlackBuck, among others are awaiting SEBI nod to proceed with their IPOs.