Artificial intelligence analytics company Fractal Analytics has raised $170 million through a secondar share sale as its prepares to go for an initial public offering (IPO), media reports said citing unidentified people.

The capital was raised at a valuation of $2.44 billion.

As part of the transaction, existing investor Apax Partners sold a 6% stake in the company to a consortium of 22 institutional investors including entities advised by Trust Investment Advisors, along with funds operated by White Oak Capital Management, Gaja Capital, and Neo Asset Management.

Fractal Analytics is reportedly looking to raise $400-500 million via its planned IPO at a valuation of $3 billion. The firm has already engaged investment banks -- Morgan Stanley, Kotak Securities, and Axis Securities to manage the IPO process, with regulatory filings expected soon.

Since its establishment in 2000 by co-founders Srikanth Velamakanni and Pranay Agrawal, Fractal has raised a total of $855 million across multiple funding rounds.

The company had last raised Rs 2,700 crore from TPG's Asia-focused private equity platform, TPG Capital Asia. in 2023.

Last year, Fractal Analytics merged artificial intelligence company Eugenie AI with itself. The merger was aimed at the company's commitment to harnessing the power of artificial intelligence.