Fractal Analytics files for Rs 4,900-cr IPO; to be first Indian AI firm to list

New Delhi: Artificial intelligence solutions provider Fractal Analytics has taken the first step towards going public, filing its preliminary papers with the markets regulator Sebi to raise Rs 4,900 crore through an initial public offering (IPO).

At the indicated price, the Mumbai-headquartered firm could be valued at more than USD 3.5 billion, according to people familiar with the matter.

The listing, if successful, would mark the first time an Indian AI-focused company debuts on the bourses.

The proposed IPO includes a fresh equity issue worth up to Rs 1,279.3 crore, alongside an offer for sale (OFS) of Rs 3,620.7 crore by existing investors, as per the draft red herring prospectus (DRHP) filed on Tuesday.

The OFS includes stake sales worth Rs 1,462.6 crore by Quinag Bidco Ltd, Rs 1,999.6 crore by TPG Fett Holdings Pte Ltd, Rs 29.5 crore by Satya Kumari Remala and Rao Venkateswara Remala, and Rs 129 crore by GLM Family Trust.

Fractal has kept the option open for a pre-IPO placement of up to Rs 255.8 crore. If that happens, the size of the fresh issue will be reduced accordingly.

Proceeds from the fresh issue would be used for investing in its arm Fractal USA for repay borrowings, setting up new offices in India, purchasing laptops, and ramping up research and development. Also, fresh capital will go towards marketing its Fractal Alpha platform as well as funding acquisitions and other strategic initiatives.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal works with large multinational clients across sectors, offering data-driven insights and end-to-end AI solutions to aid business decision-making. Its operations are structured into two units -- Fractal.ai, which delivers AI services and products hosted primarily on its Cogentiq platform, and Fractal Alpha, which houses other AI-driven ventures.

Backed by marquee investors including TPG, Apax, and Gaja, Fractal has established itself as a niche player in the pure-play AI and data analytics space, with domain expertise spanning consumer goods, retail, BFSI, healthcare, life sciences, and technology media.

The company counts global names such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla among its clients as of March 31, 2025.

In FY25, Fractal’s revenue from operations rose 26 per cent to Rs 2,765 crore, up from Rs 2,196 crore in the previous fiscal. Profit after tax stood at Rs 220 crore, reversing a loss of Rs 54.7 crore in FY24.

Industry estimates by Everest Group peg the global data, analytics and AI (DAAI) market at USD 143 billion (Rs 12 lakh crore) in FY25, projected to grow at a CAGR of 16.7 per cent to USD 310 billion (Rs 23 lakh crore) by FY30. BFSI, healthcare, retail, consumer goods and technology media are expected to account for nearly 80 per cent of that market.

Fractal has appointed Kotak Mahindra Capital, Morgan Stanley India, Axis Capital and Goldman Sachs India as the book-running lead managers for the IPO.