Artificial intelligence (AI) analytics company Fractal Analytics has secured $170 million (approximately ₹1,461 crore) through a secondary share sale, placing its valuation at $2.44 billion (₹20,978 crore). The transaction involved the sale of a 6% stake by long-term investor Apax Partners.
A group of 22 investors acquired the shares, including entities advised by Trust Investment Advisors and funds managed by White Oak Capital Management, Gaja Capital, and Neo Asset Management.
The unicorn is planning to go public through an initial public offering (IPO) that aims to raise between $400 million and $500 million, potentially driving its valuation close to $3 billion.
Fractal Analytics has appointed Morgan Stanley, Kotak Securities, and Axis Securities as its bankers for the upcoming IPO. The company is expected to file its draft red herring prospectus (DRHP) with the market regulator soon. The public offering will comprise a combination of primary and secondary share sales, with some existing investors planning to partially offload their holdings.
Fractal Analytics has raised a total of $855 million to date. Sources familiar with the matter said the company will use the latest capital infusion to expand its generative AI services, strengthen research and development, accelerate global expansion, and pre-pay certain existing loans.
Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal has since grown to operate across a broad spectrum of advanced technologies. These include computer vision, machine learning, quantum computing, cognitive automation, and conversational AI, positioning the company at the forefront of innovation in the AI space.
The company’s primary market is the United States, which contributes around 70% of its revenue. Additionally, Europe accounts for 20%, while Australia, the Middle East, and India collectively contribute the remaining 10%, highlighting Fractal’s strong global footprint.
Fractal Analytics entered the generative AI space with innovative solutions such as its digital sales advisory platform Flyfish, conversational AI tool Fractal GPT, and data science agent Arya. More recently, the company developed Kalaido.ai—India’s first text-to-image diffusion model. Fractal claims that Kalaido.ai generates high-quality images from text prompts in both English and Indian languages and plans to launch the model within the next two weeks.
