Fractal Analytics files for ₹4,900-crore IPO

Fractal Analytics, a global enterprise AI solutions provider backed by marquee investors TPG, Apax Partners and Gaja Capital, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise about ₹4,900 crore through an Initial Public Offering (IPO).

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The IPO will comprise a fresh issue of equity shares worth ₹1,279.3 crore and an offer for sale (OFS) of shares worth ₹3,620.7 crore by existing shareholders. The OFS will see divestments by Quinag Bidco Ltd (₹1,462.6 crore), TPG Fett Holdings Pte. Ltd (₹1,999.6 crore), Satya Kumari Remala and Rao Venkateswara Remala (₹29.5 crore), and GLM Family Trust (₹129 crore).

The issue will be made through the book-building process, with 75% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Individual Investors. Up to 5% of the post-offer paid-up equity will be reserved for eligible employees. The company may also consider a pre-IPO placement of up to ₹255.8 crore.

Use of proceeds

Fractal plans to invest part of the net proceeds into its subsidiary, Fractal USA, for debt repayment, as well as fund new office premises in India, purchase laptops, strengthen research and development under its flagship AI platforms, enhance sales and marketing for Fractal Alpha, and pursue acquisitions and other strategic initiatives.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics serves large enterprises across sectors including consumer packaged goods, retail, technology, media, telecom, healthcare, life sciences, and BFSI. Its AI offerings are delivered through the Fractal.ai platform, featuring the agentic AI platform Cogentiq and independent AI businesses under Fractal Alpha.

The company’s clientele includes Amica Insurance, Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nestlé, Philips, and others. With over 5,000 employees—4,600 based in India—Fractal derives 66% of its revenue from the Americas, 17.7% from Europe, and the rest from Asia-Pacific.

It has also developed proprietary AI models, including Kalaido.ai (text-to-image), Vaidya.ai (medical multi-modal ecosystem), and open-sourced the large reasoning model Fathom-R1-14B.

Financials
In FY25, revenue from operations grew 25.9% to ₹2,765 crore from ₹2,196 crore in FY24. Profit after tax improved to ₹22 crore from a loss of ₹5.47 crore, with PAT margins rising to 12.6% from -0.2% and EBITDA margins to 17.4% from 10.6%. Between 2023 and 2025, the company grew at an 18% CAGR, outpacing the 11% CAGR of the broader third-party data, analytics, and AI (DAAI) services market.

According to industry estimates, the global DAAI market—valued at $143 billion in FY25—is expected to grow at 16.7% CAGR to $310 billion by 2030.

Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India) Securities are the book-running lead managers for the issue.

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