Mumbai: Fractal Analytics, a market intelligence and AI company headquartered in Mumbai and New York, has filed its Draft Red Herring Prospectus (DHRP) with market regulator SEBI for an IPO worth Rs.4,900 crore. This would mark the first IPO by an AI-focused firm in India, which many consider a landmark in India’s evolving AI landscape.
This IPO consists of Rs.1,279 crore in fresh issue of shares with Rs.3,620 crore shares being an offer for sale (OFS), with the remainder being reserved for subscription by existing employees.
Several stakeholders, including Quinag Bidco and TPG Fett Holdings, are set to sell shares amounting to Rs.1,462.6 crore and Rs.1,999 crore respectively, along with other smaller shareholders offloading their shares.
Besides this, the company is also considering holding a pre-IPO round for shares worth Rs.255.8 crore.
With the proceeds, Fractal Analytics aims to invest in its US subsidiary Fractal US, open new offices and prepay some of its debt.
Co-founded by Srikanth Velamakanni and Pranay Agarwal in 2000, the company has been working with global enterprises across multiple verticals to provide industry-leading AI and analytics services.
The company is aiming to capitalise on this red-hot sector, even as India’s IT industry has been seeing muted demand as leading IT outsourcing companies have been forced to lay off thousands due to increased AI adoption.
The company boasts of clients like Nvidia, Alphabet, Amazon and Tesla.
Fractal had suffered a loss of Rs. 54 crore in FY24, which it managed to turn around with a net profit of Rs.220 crore in FY25. Correspondingly, the company’s revenues have increased from Rs.2196 crore in FY24 to Rs.2765 crore in FY25, a 26% rise.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
