Athira Sethu
Kochi, 13 August 2025
Fractal Analytics, a prominet Indian firm operating in artificial intelligence (AI) and data analytics space, has filed draft propsectus with SEBI (Securities and Exchange Board of India) to raise Rs 4,900 crore through IPO. The IPO may value the company at more than $3.5 billion, hence India’s first AI unicorn.
The IPO will comprise two components:
- New shares worth Rs 1,279 crore
- OFS of existing shares for Rs 3,620 crore
Shares will be sold through the OFS by:
- Quinag Bidco Ltd (Rs 1,462 crore)
- TPG Fett Holdings (Rs 1,999 crore)
- Satya Kumari Remala and Rao Venkateswara Remala (Rs 29.5 crore)
- GLM Family Trust (Rs 129 crore)
Fractal could also raise another Rs 255.8 crore in a pre-IPO placement, subject to market conditions and approvals.
The IPO will adopt the book building mechanism, wherein:
- 75% of the shares are reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors
- 10% for Retail Investors
- A small percentage is also reserved for company staff
Lead Managers for the IPO include Kotak Mahindra Capital, Morgan Stanley, Axis Capital, and Goldman Sachs.
Use of Funds
Fractal intends to use the funds raised for:
- Paying loans of its US branch, Fractal USA
- Purchasing laptops and establishing new offices in India
- Investing in research, development, and marketing
- Grow by acquiring other firms
- Meet overall company requirements
Company History
Srikanth Velamakanni and Pranay Agrawal founded Fractal Analytics in 2000. Fractal Analytics assists large corporations in making informed decisions with the help of AI and data insights. It works with global giants in the fields of retail, healthcare, technology, and banking.
The big clients of the company are Apple, Microsoft, Meta, Tesla, Amazon, and Nvidia.
Financial Performance
Fractal’s business is expanding rapidly. Its top line increased by 25.9%, from Rs 2,196 crore in FY24 to Rs 2,765 crore in FY25. The company also earned a profit of Rs 22 crore in FY25, as against a loss last year. Profit margins also improved immensely.
Fractal is now considered to be a solid player in the expanding AI space, particularly in India.
