Fractal Analytics is moving closer to becoming India’s first publicly listed pure-play AI company. The Fractal IPO, detailed in its Draft Red Herring Prospectus, is structured to raise about Rs 4,900 crore, which is roughly $560 million. That includes Rs 1,279.3 crore as a fresh issue and Rs 3,620.7 crore through an Offer-for-Sale by existing investors. If the upper price band is met, the valuation could go past $3.5 billion.
Valuation of Fractal Analytics
The largest sellers in the OFS are Apax Partners, offloading Rs 1,462.6 crore worth of shares, and TPG Fett Holdings, selling Rs 1,999.6 crore. GLM Family Trust and early investor Remala are also participating. However, founders Srikanth Velamakanni and Pranay Agrawal, along with employees who collectively hold significant stakes, are not selling.
The proceeds from the fresh issue are set aside for debt repayment at Fractal USA, capital expenditure such as new offices and equipment, and further investment into R&D. A chunk will go toward building generative and large-reasoning AI models, strengthening the Fractal Alpha platform, and funding strategic acquisitions.
Financially, for FY25, Fractal Analytics reported revenue of Rs 2,765 crore, up 25.9% year-on-year. It turned a profit of Rs 220.6 crore compared to a loss of Rs 54.7 crore in FY24. Margins are healthy, with PAT at 12.6% and EBITDA at 17.4%.
Expansion of Fractal Analytics
The company is looking to expand its Fractal AI solutions in many sectors. Solutions like Vaidya.ai for medical applications, Kalaido.ai for text-to-image generation, and the Fathom-R1-14B reasoning model point to a strategy that matches diversification. The recent launch of Cogentiq, an agentic AI platform, and work on Project Pioneer suggest a clear push toward multi-agent AI systems capable of handling complex, real-world tasks.
Fractal’s global footprint spans Mumbai and New York, supported by a team of over 5,000 people, most based in India. Around two-thirds of its revenue comes from the Americas, with Europe contributing about 17.7% and the rest from APAC and India. Its client list includes Citigroup, Nestlé, Philips, and technology majors like Microsoft, Apple, Amazon, Meta, Nvidia, Alphabet, and Tesla.
Fractal IPO Date
The Fractal IPO date is expected around December 2025. The listings will be on both BSE and NSE, subject to regulatory approvals. Fractal share price details and the final price band will be set closer to the launch. It has a profitable turnaround, growing AI capabilities, and a roster of global clients. Fractal AI’s public debut could set a benchmark for future AI-driven listings in India.
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