Tpg, Apax, Gaja Backed End To End Ai Solutions Co, Fractal Analytics Files For 4900 Cr IPO

Bhubaneswar : Globally well recognized enterprise AI company, Fractal Analytics has filed its Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”).

The Initial Public Offering (“IPO”) comprises a fresh issue of equity shares aggregating up to ₹ 12,793 million (the “Fresh Issue”) and an Offer for Sale of equity shares aggregating up to ₹ 36,207 million (the “Offer for Sale”, and together with the Fresh Issue, the “Offer”).

The Offer for Sale of face value of ₹1 each comprises, equity shares aggregating up to ₹ 14,626 million by Quinag Bidco Ltd; equity shares aggregating up to ₹ 19,996 million by TPG Fett Holdings Pte. Ltd; equity shares aggregating up to ₹ 295 million by Satya Kumari Remala and Rao Venkateswara Remala; and equity shares aggregating up to ₹ 1,290 million by GLM Family Trust (collectively, the “Selling Shareholders”).

The Offer is being made through the book building process, in compliance with Regulation 6(2) where 75% of the Net Offer shall be available to QIBs, 15% to Non Institutional Investors and 10% to Retail Individual Investors. It also includes a reservation for subscription by eligible employees (“Employee Reservation Portion”), not exceeding 5% of the Company’s post-offer paid-up equity share capital.

The Company, in consultation with the BRLMs, may consider a pre-IPO placement aggregating up to ₹2,558 million, as may be permitted under the applicable law, at its discretion, prior to filing of the Red Herring Prospectus with the RoC. The pre-IPO placement, if undertaken, will be at a price to be decided by our Company, in consultation with the BRLMs.

Fractal Analytics proposes to utilize the net proceeds from the Offer towards investment in one of the company’s subsidiaries, Fractal USA, for pre-payment and/ or scheduled repayment, in full or in part, of its borrowings; purchase of laptops; setting-up new office premises in India; investment in research and development; and sales and marketing under Fractal Alpha; and funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.

Founded in 2000, Fractal has been cofounded by Srikanth Velamakanni and Pranay Agrawal, it supports large global enterprises across multiple industry verticals and business functions with data-driven insights and assists in decision-making through end-to-end AI solutions.  

Backed by marquee investors like TPG, Apax, Gaja, the countries leading pureplay data and artificial intelligent company has a domain expertise spanning across consumer packaged goods & retail; technology, media and telecom; healthcare and life sciences and banking, financial services and insurance.

The companies  full suite of AI solutions is offered under Fractal.ai – which consists of AI products and services under its flagship agentic AI platform, Cogentiq that offers a pre-built suite of agents, tools, connectors with in built  low code, security, governance, auditability and inter-operability features as well as  Fractal Alpha, consisting of independent AI businesses that target core must win clients and broader markets and geographies with each business under separate management.

Besides serving 113 Must Win Clients, including Amica Insurance, C3 AI, Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nestlé, Philips, among others.

With almost 4600 employees in India out of the total 5000+ employees,  it derives over 66% revenues from Americas, 17.7% from Europe and rest from the APAC region, this stands true to the evolving Viksit Bharat and global capability story.

As per its industry report, it is uniquely placed among other industry players with active investments in expanding its AI and Gen AI software portfolio and R&D activities. As on 31 March, 2025 it has served majority of the magnificent companies which include Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla.

Notable to mention, it has built its own diffusion based text to image model, Kalaido.ai; Vaidya.ai, a medical multi modal foundational ecosystem consisting of large language models, vision language models and medical reasoning systems. It has also created a mathematical large reasoning model and has open sourced Fathom-R1-14B, a large AI reasoning foundation model with its datasets. Many of their other products are publicly accessible too.

Fractal’s revenue from operations increased by 25.9% to Rs 2765 cr in FY25 in comparison with Rs 2196 cr in FY24. Similarly Profit after tax had a positive turnaround to 220 cr in FY25 from (54.7 cr) in FY24. PAT and EBIDTA margins also saw an uptick to 12.6% from (0.2%) and 17.4% from 10.6% respectively.

Between 2023 and 2025 Fractal has been growing at 18% CAGR compared to third party data, analytics and AI services companies that grew at 11%.

Enterprises are increasingly engaging with third-party providers for third party data, analytics and AI (“DAAI”) services, as they find it difficult to navigate the rapidly evolving DAAI market and access the right talent and technologies, while managing internal costs and core competencies. The total addressable  market is valued at an estimated $143bn in FY25 and is estimated to grow at a 16.7% CAGR to reach $310bn by 2030.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited and Goldman Sachs (India) Securities Private Limited are the Book Running Lead Managers to the IPO.