AI firm Fractal Analytics files DRHP, eyeing to raise ₹4,900 cr via IPO

Enterprise AI company, Fractal Analytics, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), with an Initial Public offer worth Rs 4,900 crore. Fractal will be the first AI-focused firm to tap into the public market.

 

The IPO comprises a fresh issue of equity shares aggregating up to ₹12,79.3 crore and an offer for sale of equity shares aggregating up to ₹3620.7 crore.

 

The offer is being made through the book building process, in compliance with Regulation 6(2) where 75 per cent of the net offer shall be available to QIBs, 15 per cent to non-institutional investors and 10 per cent to retail individual investors. It also includes a reservation for subscription by eligible employees (Employee Reservation Portion), not exceeding 5 per cent of the company’s post-offer paid-up equity share capital.

 

 

The company may consider a pre-IPO placement aggregating up to ₹2,55.8 crore.

 

Fractal Analytics proposes to utilise the net proceeds from the offer towards investment in one of the company’s subsidiaries, Fractal USA, for pre-payment and/or scheduled repayment, in full or in part, of its borrowings, purchase of laptops, setting-up new office premises in India, investment in research and development, sales and marketing under Fractal Alpha, and funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

 

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

 

Backed by marquee investors like TPG, Apax, Gaja, the company has domain expertise spanning across consumer packaged goods & retail, technology, media, telecom, healthcare and life sciences, banking, financial services and insurance. 

 

It serves 113 must-win clients, including Amica Insurance, C3 AI, Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nestlé, Philips, among others. 

 

With almost 4,600 employees in India out of the total over 5,000, it derives over 66 per cent revenues from Americas, 17.7 per cent from Europe and rest from the APAC region.

 

According to industry report, it is uniquely placed among other industry players, with active investments in expanding its AI and GenAI software portfolio and research and development activities. As on March 31, 2025, it has served the majority of the major tech companies, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.

 

It has built its own diffusion based text-to-image model, Kalaido.ai, and Vaidya.ai, a medical multi-modal foundational ecosystem consisting of large language models, vision language models and medical reasoning systems. It has also created a mathematical large reasoning model and has open-sourced Fathom-R1-14B, a large AI reasoning foundation model with its datasets. Many of their other products are publicly accessible too.

 

Fractal’s revenue from operations increased by 25.9 per cent to ₹2,765 crore in FY25 in comparison with ₹2,196 crore in FY24. Similarly, profit after tax had a positive turnaround to Rs 220 crore in FY25 from a loss of 54.7 crore in FY24. PAT and Ebitda margins also saw an uptick to 12.6 per cent from a negative 0.2 per cent and 17.4 per cent per cent from 10.6 per cent, respectively.

 

Between 2023 and 2025, Fractal has been growing at 18 per cent CAGR compared to third party data, analytics and AI services companies that grew at 11 per cent, said the company.

 

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited and Goldman Sachs (India) Securities Private Limited are the Book Running Lead Managers to the IPO.