SEBI Approves Fractal Analytics to Launch India’s First AI IPO

Fractal Analytics has received approval from SEBI for its planned IPO, marking an important step for the enterprise AI company as it moves toward entering the public markets.

The IPO will include a fresh issue of shares worth Rs 1,279.3 crore and an offer for sale (OFS) of shares worth Rs 3,620.7 crore from existing investors.

The OFS represents a major stake sale by several long-time investors. Quinag Bidco will sell shares worth Rs 1,462.6 crore, and TPG Fett Holdings will sell shares worth Rs 1,999.6 crore.

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Individual shareholders Satya Kumari Remala and Rao Venkateswara Remala will together sell shares worth Rs 29.5 crore, while the GLM Family Trust plans to sell shares worth Rs 129 crore.

The IPO includes both new share issuance and investor share sales, showing that the company aims to raise fresh capital while allowing some investors to partially exit.

Fractal plans to use the funds from the fresh issue for expansion and operational needs. Part of the money will go to its US subsidiary to repay debt. The rest will support regular expenses like buying laptops and setting up new office spaces in India.

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Some of the funds will also go toward R&D and sales and marketing as part of the Fractal Alpha initiative. The company also plans to grow through acquisitions, showing its intent to expand its capabilities in the competitive AI market.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal has grown into a well-known global AI solutions company. It works with some of the world’s biggest enterprises across sectors such as consumer goods, retail, technology, media, telecom, healthcare, life sciences, and financial services.

The company is backed by major private equity firms like TPG, Apax, and Gaja, and is known for combining deep industry knowledge with advanced data and AI solutions. Fractal has also worked with top global technology leaders, including Microsoft, Apple, NVIDIA, Alphabet, Amazon, Meta, and Tesla.

Fractal’s financial performance has steadily improved. Revenue from operations increased 25.9% to Rs 2,765 crore in FY25, compared with Rs 2,196 crore in FY24. The company also moved from a loss of Rs 5.47 crore in FY24 to a profit of Rs 22 crore in FY25. Profit margins strengthened as well, with PAT margin rising to 12.6% and EBITDA margin improving to 17.4%.

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