AI Solutions Provider Fractal Analytics Files Draft Papers for Rs 4,900-cr IPO

Artificial intelligence solutions provider Fractal Analytics has filed preliminary papers with the markets regulator, Sebi, seeking its approval to raise Rs 4,900 crore through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares worth up to Rs 1,279.3 crore and an Offer for Sale (OFS) valued at Rs 3,620.7 crore, according to the draft red herring prospectus (DRHP) filed on Tuesday. The OFS includes Rs 1,462.6 crore worth of shares 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 129.0 crore by GLM Family Trust.

The company may opt for a pre-IPO placement of up to Rs 255.8 crore. If carried out, the size of the fresh issue will be reduced. Fractal Analytics plans to use the proceeds from the fresh issue to invest in its subsidiary, Fractal USA, for pre-payment or repayment of its borrowings; set up new offices in India; invest in research and development; support sales and marketing under Fractal Alpha; fund acquisitions and other strategic initiatives; and for general corporate purposes.

Founded in 2000, Fractal was cofounded by Srikanth Velamakanni and Pranay Agrawal. It supports large global enterprises across multiple industry verticals and business functions, providing data-driven insights and assisting in decision-making through end-to-end AI solutions.

Backed by marquee investors like TPG, Apax, Gaja, Fractal is a leading pure-play data and artificial intelligence company with domain expertise spanning consumer packaged goods & retail; technology, media and telecom; healthcare and life sciences; and banking, financial services and insurance. According to an industry report, it is uniquely positioned among other industry players with active investments in expanding its AI and Gen AI software portfolio and R&D activities.

As of March 31, 2025 it served global companies including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla. On the financial front, Fractal's revenue from operations increased by 26 per cent to Rs 2,765 cr in FY25 from Rs 2,196 crore in the preceding fiscal. Similarly, profit after tax had a positive turnaround to Rs 22 crore in FY25 from a loss of Rs 5.47 crore in FY24.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital and Goldman Sachs (India) Securities have been appointed by Fractal to manage its maiden public issue.