TPG, Apax-Backed AI Company Fractal Analytics Files Rs 4,900-Crore IPO Papers with SEBI
- 13th August 2025
- 02:00:00 PM
- 3 min read
Mumbai | August 13 – Artificial intelligence solutions provider Fractal Analytics Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 4,900 crore through an initial public offering (IPO).
The public issue will comprise a fresh equity issue worth Rs 1,279.3 crore and an offer for sale (OFS) of shares aggregating Rs 3,620.7 crore by existing shareholders
Key Shareholder Exits in OFS
The OFS will facilitate a partial exit for marquee investors:
- Quinag Bidco Ltd – Rs 1,462.6 crore
- TPG Fett Holdings Pte Ltd – Rs 1,999.6 crore
- Satya Kumari Remala & Rao Venkateswara Remala – Rs 29.5 crore
- GLM Family Trust – Rs 129 crore
Fractal may also consider a pre-IPO placement of up to Rs 255.8 crore before filing its red herring prospectus with the Registrar of Companies. If executed, the fresh issue size will be reduced proportionately.
Fund Utilisation and Growth Strategy
As per the DRHP, proceeds from the fresh issue will be utilised to:
- Invest in Fractal USA for debt prepayment or repayment
- Set up new offices in India
- Expand research and development in AI and Generative AI (GenAI)
- Strengthen sales and marketing via Fractal Alpha
- Pursue acquisitions and other strategic initiatives
- Meet general corporate expenses
Fractal’s strategic focus on AI-driven software and GenAI positions it to benefit from the surging enterprise demand for advanced analytics solutions across industries.
Company Profile
Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics delivers end-to-end AI solutions to large global enterprises. It works across sectors such as consumer packaged goods, retail, technology, media, telecom, healthcare, life sciences, and financial services.
The company’s client roster includes Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla, underscoring its global enterprise penetration. Backed by investors like TPG, Apax, and Gaja Capital, Fractal has actively expanded its AI and GenAI capabilities through sustained R&D investments.
Financial Snapshot (Rs crore)
| Financial Year | Revenue from Operations | YoY Growth | Profit After Tax | PAT Margin |
| FY24 | 2,196 | – | -54.7 | -2.50% |
| FY25 | 2,765 | 25.90% | 220.6 | 8.00% |
Source: DRHP filed with SEBI
The company recorded a 25.9% rise in operational revenue in FY25, with a turnaround in profitability — from a loss of Rs 54.7 crore in FY24 to a net profit of Rs 220.6 crore in FY25.
IPO Structure and Management
The IPO will be executed through a book-building process, with:
- 75% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for Retail Individual Investors (RIIs)
- Up to 5% of post-offer equity reserved for employees
Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities are the Book Running Lead Managers.
Fractal’s listing plans coincide with heightened investor appetite for AI-focused IPOs, as capital markets reward companies that can monetise data and scale machine learning models. Its strong client base, recurring revenues, and diversified sector presence could make the IPO a significant draw for institutional and retail investors alike.
(Source: DRHP filed with SEBI)
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
