Fractal Analytics, one of India’s leading AI and analytics companies, has taken a major step toward entering the public markets. On August 12, 2025, the company filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India. Fractal aims to raise ₹4,900 crore, or about $590 million, through its initial public offering. This move will place the company among India’s most high-profile AI firms to go public and will mark a major milestone in the country’s growing AI sector.
Structure of the Public Offer
Fractal’s public issue has two parts. The first part involves a fresh issue of shares worth ₹1,279.3 crore. This capital will go directly to the company for expansion and strategic projects. The second part involves an offer-for-sale worth ₹3,621 crore. In the offer-for-sale, several existing investors will sell part of their holdings to the public. These investors include Quinag Bidco, managed by Apax Partners, TPG Fett Holdings Pte, GLM Family Trust, and individual shareholders Satya Kumari Remala and Rao Venkateswara Remala. This structure allows Fractal to raise fresh funds while also giving early backers an opportunity to unlock value.
Plans for Listing
Fractal plans to list its shares on both the Bombay Stock Exchange and the National Stock Exchange. The company has set a target to complete the listing by December 2025. It may also consider a pre-IPO placement worth up to ₹255.8 crore. If that placement takes place, the size of the fresh share issue will reduce accordingly.
Strong Financial Performance
Fractal has built momentum with strong financial results. In the 2024–25 financial year, the company’s revenue rose by almost 26 percent to ₹2,765.4 crore, up from ₹2,196.3 crore in the previous year. More importantly, Fractal turned a loss in the earlier year into a profit of ₹220.6 crore. The company improved its operating margins as well. EBITDA margin grew to 17.4 percent, and profit after tax margin increased to 12.6 percent. These numbers show that Fractal has strengthened its business model and now generates healthy returns from its operations.
Shareholding Pattern Before the IPO
Before filing for the IPO, Fractal’s promoters held about 18.3 percent of the company. TPG owned 25.7 percent, Quinag Bidco held 18.8 percent, and GLM Family Trust owned 15.7 percent. Employees held close to 17 percent of the company through stock options. With the IPO, many employees may see a significant rise in the value of their holdings, which will reward their long-term commitment.
How Fractal Will Use the Funds
Fractal has laid out a clear plan for how it will use the money from the fresh issue. It will use ₹264.9 crore to repay debts at its United States subsidiary, Fractal USA. It will invest ₹57.1 crore in laptops and related technology for employees. The company will also use ₹121.1 crore to set up new office facilities in India. In addition, Fractal will spend ₹355.1 crore on research and development and to strengthen its sales and marketing activities, especially under its Fractal Alpha business line. The company has also set aside funds for possible acquisitions and for general corporate purposes.
AI Products and Innovations
Fractal has built a reputation for creating advanced AI solutions for enterprises. The company developed Kalaido.ai, a multilingual text-to-image AI model. It also launched Vaidya.ai, a medical AI platform that combines vision and language models to provide insights for healthcare. Fractal released Fathom-R1-14B, a large reasoning AI model, as an open-source project to help developers and researchers. By investing in these products, Fractal strengthens its position as a leader in enterprise AI and generative AI solutions.
Global Client Base
Fractal serves more than 150 Fortune 500 companies. Its clients include some of the world’s largest names in technology, retail, healthcare, financial services, and consumer goods. The company works with businesses in the United States, Europe, Asia-Pacific, and India. Over 65 percent of its revenue comes from the Americas, around 18 percent from Europe, and the rest from other markets. This global reach allows Fractal to tap into multiple industries and geographic regions, which reduces its dependence on any single market.
Market Opportunity and Timing
Fractal had considered an IPO in 2021 but chose to wait due to unfavorable market conditions. The company now believes the timing is right because artificial intelligence has become one of the fastest-growing sectors worldwide. Businesses across industries are investing heavily in AI-driven insights and automation. By going public now, Fractal can capture investor interest at a time when AI adoption is accelerating both in India and abroad.
Details of the IPO Process
Fractal will conduct the IPO through a book-building process. It will allocate 75 percent of the issue to qualified institutional buyers, 15 percent to non-institutional investors, and 10 percent to retail investors. The offer also reserves up to 5 percent for employees, allowing them to participate in the IPO and benefit from the company’s growth. This balanced allocation ensures a mix of institutional stability and retail participation.
Banking Partners and Valuation
Fractal has appointed Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India) Securities as the lead managers for the IPO. Market experts estimate that the IPO could value Fractal at over $3.5 billion. Such a valuation would place it among India’s most valuable publicly traded AI firms, giving it significant visibility in global markets.
Long-Term Vision
Fractal aims to use its public listing as a springboard for further growth. The company wants to expand its AI product portfolio, enter new markets, and deepen relationships with existing clients. It also plans to invest more in innovation, particularly in generative AI and domain-specific AI solutions for industries like healthcare, finance, and consumer goods. By combining its strong technology capabilities with the trust it has built among global clients, Fractal aims to position itself as a leader in the next generation of enterprise technology providers.
Conclusion: A Turning Point for Fractal and Indian AI
The ₹4,900 crore IPO represents a turning point for Fractal Analytics. From its beginnings as a niche analytics firm, the company has grown into a global AI solutions leader with a strong financial track record, innovative products, and a diverse client base. The public offering will give Fractal the resources to scale faster, strengthen its technology, and expand its reach in global markets. It also signals the maturity of India’s AI sector, which is now producing companies capable of attracting billions in investor capital.
If Fractal executes its growth plans successfully after the IPO, it will not only deliver strong returns for its shareholders but also inspire a new generation of Indian technology companies to aim for global leadership in artificial intelligence.
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