Fractal Analytics submits Draft Red Herring Prospectus to SEBI, seeking to gather Rs 4,900 crores via Initial Public Offering
Fractal Analytics, an AI-driven analytics company based in Mumbai and New York, has announced its intention to go public through an initial public offering (IPO) worth Rs 4,900 crore ($590 million). The company, founded in 2000 by IIM Ahmedabad alumni, has been growing steadily and has attracted significant investments over the years.
In preparation for the IPO, several shareholders, including Apax Partners, TPG, GLM Family Trust, and early investors Satya Kumari Remala and Rao Venkateswara Remala, will sell their stakes. Apax Partners and TPG will sell shares worth Rs 1,462.6 crore and Rs 1,999.6 crore, respectively, through their affiliates.
Fractal reported a net profit of Rs 220.6 crore in the fiscal year ended March 2025, reversing a loss, and operating revenue of Rs 2,765.4 crore for the same period. The company was valued at $2.44 billion in a secondary share sale last month.
The IPO will consist of a fresh issue of shares up to Rs 1,279.3 crore and an offer for sale of up to Rs 3,620.7 crore. Proceeds from the fresh issue will be used for repayment of borrowings at its U.S. subsidiary, setting up new offices in India, investment in research and development, expanding sales and marketing, and potential acquisitions.
Fractal has raised about $685 million from investors, including TA Associates, Khazanah Nasional Berhad, and Google, among others. The company's notable clients include Wells Fargo.
Fractal's portfolio includes Cogentiq, Iqigai, and Kalaido.ai. The company provides AI-powered analytics and decision-support tools to global enterprises, helping them make data-driven decisions and improve their operations.
The Securities and Exchange Board of India (SEBI) has yet to approve the draft red herring prospectus (DRHP) for the IPO. Once approved, Fractal Analytics will join the ranks of India's publicly traded AI and analytics companies.
The company crossed the $1 billion valuation mark in 2022, marking a significant milestone in its growth journey. With the upcoming IPO, Fractal Analytics is poised to continue its growth trajectory and solidify its position as a leader in the AI-driven analytics industry.
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