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 SEBI for an Initial Public Offering (IPO) of Rs 4,900 crore, making it the first AI-focused firm in India to enter the public market.

The IPO includes a fresh issue of equity shares worth up to ₹1,279.3 crore and an offer-for-sale of equity shares totaling up to ₹3,620.7 crore.

The IPO will be conducted through the book-building process under Regulation 6(2), with 75% of the net offer for QIBs, 15% for non-institutional investors, and 10% for retail individual investors. Additionally, up to 5% of post-offer paid-up equity is reserved for eligible employees under the Employee Reservation Portion.

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The company may also pursue a pre-IPO placement totaling up to ₹255.8 crore.

Fractal has appointed Kotak Mahindra Capital, Morgan Stanley, Axis Capital, and Goldman Sachs as book running lead managers, with MUFG Intime India serving as the registrar.

The company plans to use the fresh issue proceeds for organic and inorganic growth initiatives, working capital, and general corporate purposes.

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Fractal, co-founded by Srikanth Velamakanni and Pranay Agrawal in 2000, helps large global enterprises across various industries and business functions by providing data-driven insights and end-to-end AI solutions to support decision-making.

According to the DRHP, TPG Fett is Fractal’s largest external investor with 25.67%, followed by Apax-owned Quinag Bidco at 18.78%, and GLM Family Trust with 15.7%.

Fractal operates in advanced analytics and AI, serving enterprises across healthcare, retail, financial services, and technology. Its portfolio includes Qure.ai, Asper.ai, Cuddle.ai, and Analytics Vidhya, with a global presence in the US, UK, Canada, Australia, and other markets.

Financially, Fractal reported consolidated revenue of Rs 2,765 crore in FY25, up from Rs 2,196 crore in FY24. Net profit stood at Rs 220.6 crore in FY25, compared to a loss of Rs 54.7 crore in FY24.

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