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What is the story about?
Capital markets regulator SEBI has approved Fractal Analytics' draft initial public offering papers, paving the way for India’s first share sale by an AI-focused company.
The clearance, published in SEBI’s latest processing update, moves the 25-year-old firm closer to a public market debut.
Fractal Analytics is an AI and data analytics company, providing end-to-end AI-driven solutions, mostly to Fortune 500 companies.
The company provides AI, machine learning and data analytics solutions, helping clients with decision-making, efficiency and growth, combining artificial intelligence, engineering and design. It also develops AI-powered products and platforms under the Cogentiq brand for specific enterprise functions such as decision intelligence, contact center optimization, and healthcare.
Fractal.ai is the company's key revenue generator, through high-value consulting, custom implementation and managed services. It also generates revenue through a subscription-based model.
The Mumbai-headquartered AI and analytics company counts some of the world’s largest technology and consumer firms, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla, as clients, according to the draft papers.
According to its DRHP, Fractal reported an operating revenue of ₹2,765.4 crore in financial year 2025, which is a growth of 25.9% compared to the ₹2,196 crore that it reported in financial year 2024.
The company also reported a net profit of ₹220.6 crore, turning profitable after a net loss of ₹54.7 crore in financial year 2024.
Majority of Fractal's revenue came from the Analytical Services business, while subscription is still a small part of the overall topline, at just ₹64 crore.
65% of the company's revenue comes from the US market, while 17.5%, 8.5% and 9.5% comes from Europe, India and Rest of the World respectively.
Fractal Analytics’ IPO will include a fresh issue of equity shares worth ₹1,279 crore and an offer for sale of up to ₹3,621 crore by existing shareholders.
The selling shareholders include Quinag Bidco, TPG Fett Holdings, Satya Kumari Remala and Rao Venkateswara Remala, and GLM Family Trust. A Bloomberg report said the listing could value the company at over $3.5 billion.
Proceeds from the issue will be used to repay debt at its US subsidiary, open new offices in India and fund research and development, with an emphasis on generative AI.
The company plans to maintain high R&D spending ahead of the IPO, CEO Srikanth Velamakanni told Reuters last week.
Nearly three-quarters of the IPO will serve as an exit route for large investors, with TPG Fett Holdings looking to sell shares worth up to ₹2000 crore and Apax Partners’ Quinag Bidco planning to offload up to ₹1463 crore.
Co-founders Srikanth Velamakanni and Pranay Agrawal, along with their families, own about 20% of the company and are not selling any shares in the offer for sale.
Morgan Stanley India, Goldman Sachs India, Kotak Mahindra Capital and Axis Capital are the book-running lead managers for the IPO.
The clearance, published in SEBI’s latest processing update, moves the 25-year-old firm closer to a public market debut.
About Fractal Analytics
Fractal Analytics is an AI and data analytics company, providing end-to-end AI-driven solutions, mostly to Fortune 500 companies.
The company provides AI, machine learning and data analytics solutions, helping clients with decision-making, efficiency and growth, combining artificial intelligence, engineering and design. It also develops AI-powered products and platforms under the Cogentiq brand for specific enterprise functions such as decision intelligence, contact center optimization, and healthcare.
Fractal.ai is the company's key revenue generator, through high-value consulting, custom implementation and managed services. It also generates revenue through a subscription-based model.
The Mumbai-headquartered AI and analytics company counts some of the world’s largest technology and consumer firms, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla, as clients, according to the draft papers.
Fractal Analytics' Financials
According to its DRHP, Fractal reported an operating revenue of ₹2,765.4 crore in financial year 2025, which is a growth of 25.9% compared to the ₹2,196 crore that it reported in financial year 2024.
The company also reported a net profit of ₹220.6 crore, turning profitable after a net loss of ₹54.7 crore in financial year 2024.
Majority of Fractal's revenue came from the Analytical Services business, while subscription is still a small part of the overall topline, at just ₹64 crore.
65% of the company's revenue comes from the US market, while 17.5%, 8.5% and 9.5% comes from Europe, India and Rest of the World respectively.
About Fractal Analytics' IPO
Fractal Analytics’ IPO will include a fresh issue of equity shares worth ₹1,279 crore and an offer for sale of up to ₹3,621 crore by existing shareholders.
The selling shareholders include Quinag Bidco, TPG Fett Holdings, Satya Kumari Remala and Rao Venkateswara Remala, and GLM Family Trust. A Bloomberg report said the listing could value the company at over $3.5 billion.
Proceeds from the issue will be used to repay debt at its US subsidiary, open new offices in India and fund research and development, with an emphasis on generative AI.
The company plans to maintain high R&D spending ahead of the IPO, CEO Srikanth Velamakanni told Reuters last week.
Nearly three-quarters of the IPO will serve as an exit route for large investors, with TPG Fett Holdings looking to sell shares worth up to ₹2000 crore and Apax Partners’ Quinag Bidco planning to offload up to ₹1463 crore.
Co-founders Srikanth Velamakanni and Pranay Agrawal, along with their families, own about 20% of the company and are not selling any shares in the offer for sale.
Morgan Stanley India, Goldman Sachs India, Kotak Mahindra Capital and Axis Capital are the book-running lead managers for the IPO.
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