Fractal Analytics Submits an IPO for ₹4,900 Crores, Intends to Increase Global AI Footprint
Fractal Analytics, a global leader in AI and analytics solutions, is set to make history as it prepares for its Initial Public Offering (IPO) in India. The company, co-founded by Srikanth Velamakanni and Pranay Agrawal in 2000, has secured backing from marquee investors like TPG, Apax, and Gaja, and is valued at over $2 billion.
The IPO, which is expected to raise approximately Rs 4,900 crore, will consist of a fresh issue of equity shares aggregating up to INR 12,793 million, and an Offer For Sale (OFS) of up to INR 36,207 million by existing shareholders. The OFS includes shares from Quinag Bidco Ltd (Apax Partners), TPG Fett Holdings Pte. Ltd, Satya Kumari Remala, Rao Venkateswara Remala, and GLM Family Trust.
The book running lead managers for the IPO are Axis Capital, Goldman Sachs, Morgan Stanley, and Kotak Mahindra Capital. If a pre-IPO placement of up to Rs 255.8 crore is executed, it will reduce the fresh issue size proportionately.
The proceeds from the IPO will be primarily used for general corporate purposes, as well as for investment in Fractal USA, pre-payment and repayment of borrowings, purchasing laptops, setting up new office premises in India, research and development, sales and marketing under Fractal Alpha, funding inorganic growth, and other general corporate purposes.
Fractal supports large global enterprises across multiple industry verticals and business functions with data-driven insights and end-to-end AI solutions. In the financial year 2025, the company reported a revenue from operations of Rs 2765 crore, a significant increase of 25.9 per cent from the previous year's Rs 2196 crore. The company's profit after tax also saw a positive turnaround to Rs 220 crore in FY25 from Rs 54.7 crore in FY24.
The company's active investments in expanding its AI and Gen AI software portfolio and R&D activities have been highlighted in its industry report. As of 31 March, 2025, Fractal has served companies like Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla.
This IPO marks a significant milestone as the first listing for a pure-play AI and Data Analytics company in India. The company's focus on AI and its impressive financial performance make it an attractive investment opportunity for both institutional and retail investors.
| Aspect | Details | |-----------------------------|--------------------------------------------------------| | IPO Size | Rs 4,900 crore (~US$560 million) | | Fresh Issue | Rs 1,279.3 crore | | Offer For Sale (OFS) | Rs 3,620.7 crore | | Pre-IPO Placement | Up to Rs 255.8 crore (optional) | | Valuation | Over $2 billion (Rs 19,000 crore approx) | | Book Running Lead Managers | Axis Capital, Goldman Sachs, Morgan Stanley, Kotak Mahindra Capital | | Use of Funds | General corporate purposes |
Stay tuned for more updates on this exciting development in the AI and analytics industry.
[1] India’s First Enterprise AI Company to Go Public [2] Fractal Analytics Files for IPO in India [3] Fractal Analytics IPO: All You Need to Know [4] Fractal Analytics IPO: A Look at the Company's Financials [5] Fractal Analytics IPO: Key Details
- Fractal Analytics, a global technology leader in AI and analytics solutions, is about to make history with its Initial Public Offering (IPO) in India, marking the first listing for a pure-play AI and Data Analytics company.
- The tech company, co-founded by Srikanth Velamakanni and Pranay Agrawal in 2000, has secured significant investment from marquee investors like TPG, Apax, and Gaja, and is valued at over $2 billion.
- The IPO, expected to raise approximately Rs 4,900 crore, will be composed of a fresh issue of equity shares aggregating up to INR 12,793 million, and an Offer For Sale (OFS) of up to INR 36,207 million by existing shareholders.
- The proceeds from the IPO will be primarily utilized for general corporate purposes, investment in Fractal USA, pre-payment and repayment of borrowings, purchasing laptops, setting up new office premises in India, research and development, sales and marketing under Fractal Alpha, funding inorganic growth, and other general corporate purposes.
- Fractal Analytics supports large global enterprises across multiple industry verticals and business functions with data-driven insights and end-to-end AI solutions, and has served notable companies such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla.
- With the impressive financial performance and focus on AI, Fractal Analytics presents an attractive investment opportunity for both institutional and retail investors, and the IPO is expected to be a significant milestone in the marketing and growth of the business and finance sectors, driven by technological advancements in artificial-intelligence.
