India set for its first AI IPO as Fractal Analytics secures SEBI approval; Nvidia–Tesla-linked AI firm plans ₹4,900-crore issue

Mumbai | November 25

India is set to welcome its first publicly listed artificial intelligence company after Fractal Analytics received regulatory approval for its initial public offering. The green light from the Securities and Exchange Board of India (SEBI) moves the 25-year-old enterprise AI specialist closer to what could become the country’s first pure-play AI listing at a time when global investment in artificial intelligence is accelerating.

The IPO is expected to raise ₹4,900 crore, comprising a fresh issue of ₹1,279 crore and an offer for sale of ₹3,621 crore by existing shareholders. The selling investors include TPG Fett Holdings, Quinag Bidco (Apax Partners), Satya Kumari Remala, Rao Venkateswara Remala, and the GLM Family Trust. Market estimates suggest the company could be valued at more than $3.5 billion at listing.

The regulator’s latest update also confirmed approval for two other offerings  Amagi Media Labs (SaaS) and Sahajanand Medical Technologies (cardiac stents)  indicating an active pipeline of technology-led IPOs.

How Fractal Built Its Global AI Business

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal has grown into one of India’s most recognised AI and analytics businesses. The company builds enterprise-scale decision intelligence platforms, advanced analytics solutions and GenAI products for large global firms.

Its client list includes Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla, giving it one of the strongest international rosters among Indian technology companies. Nearly 65% of Fractal’s revenue comes from the United States, where it operates through Fractal USA.

The company has raised more than $800 million to date from global investors including TPG, Apax Partners, and Gaja Capital, helping expand its software stack, data-science talent pool and global delivery footprint.

In September, Fractal was among the firms selected by the Indian government to help build the country’s first large reasoning model, a national-scale AI initiative.

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Financial performance

Fractal Analytics – Key Financials (FY25 vs FY24)

Fractal reported a 25.9% rise in revenue and returned to profitability in FY25, supported by stronger demand from enterprise clients and improved operating leverage. EBITDA margin expanded meaningfully due to scale advantages and a greater contribution from AI-led software products.

How the IPO Funds Will Be Deployed

According to the draft prospectus, proceeds from the fresh issue will be used for:

• Strengthening Fractal USA, including debt repayment
• Setting up new office infrastructure in India
• Increasing investment in AI and Generative AI research, including reasoning-model development
• Funding potential acquisitions and other inorganic growth initiatives
• Expanding sales and marketing under Fractal Alpha
• Hardware upgrades and operational expansion

Fractal CEO Srikanth Velamakanni told Reuters the company plans to maintain and potentially increase R&D spending as global demand for AI capabilities accelerates.

India’s AI Market Draws Global Attention

The approval comes as the global race in AI infrastructure intensifies. Google recently announced a $15-billion investment for a new AI data-centre campus in Andhra Pradesh, while Microsoft and Amazon continue to expand cloud and AI capacity across India.

With SEBI’s clearance in place, Fractal is expected to become the first AI-focused company to list in India, offering public-market investors direct exposure to the country’s high-growth enterprise AI sector.

The IPO is being managed by Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India).

Also Read: TPG, Apax-Backed AI Company Fractal Analytics Files Rs 4,900-Crore IPO Papers with SEBI

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