Fractal Analytics has officially set the stage for what could become India’s first pure-play artificial intelligence IPO. The announcement has already stirred interest across startup, tech, and investor circles, marking a significant moment for India’s AI ecosystem.
With a strong global clientele, improving profitability, and backing from marquee investors, Fractal’s public listing isn’t just another IPO. It represents a broader statement about India’s growing role in the global AI and decision intelligence space. The company has announced the public issue and will open for subscription on February 9 and close on February 11, 2025. The IPO comprises two major parts: Rs 1,023 crore in fresh shares and Rs 1,810 crore from an offer-for-sale by existing shareholders looking to cash out.
From 2000 To Now: How Fractal Analytics Built Business
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Srikanth Velamakanni and Pranay Agarwal started Fractal Analytics back in 2000. What began as an analytics firm has grown into a global AI and decision intelligence company with offices in Mumbai and New York.
The client list reads like a who’s who of tech: Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla all use Fractal’s services. That’s not just name-dropping; over 65% of the company’s revenue comes from US-based customers, which speaks to its foothold in the world’s biggest market.
Where’s The Money Going?
Fractal has clear plans for the Rs 1,023 crore fresh issue. Part of it will go toward repaying debt at its US arm, Fractal USA. The company also needs laptops and IT infrastructure for employees, plus additional office space in India to support growth.
Beyond the basics, Fractal wants to pump money into its AI and Gen AI product pipeline. There’s also a budget set aside for acquisitions, which suggests the company isn’t planning to grow organically alone.
The Money Behind Fractal Analytics
Big-name investors have backed Fractal over the years. TPG, Apax Partners, and Gaja Capital are among the major shareholders. The company has raised over $800 million in total funding, which shows these investors saw something worth betting on.
Numbers That Matter
Fractal’s financials tell an interesting story. Revenue for the year ending March 2025 came in at Rs 2,765 crore, up 26% from the previous year. That’s solid growth, but here’s what really stands out: the company turned profitable.
Fractal posted a profit after tax of Rs 22 crore, compared to a loss of Rs 5.47 crore last year, while EBITDA margins jumped from 10.6% to 17.4%. Those numbers show the business isn’t just growing; it’s getting more efficient at making money.
Who’s Running The Show?
Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs India Securities are managing the IPO. When you see names like Morgan Stanley and Goldman Sachs attached to a deal, it usually signals strong institutional interest.
Conclusion
As the subscription window approaches, both retail and institutional investors will be closely evaluating Fractal’s fundamentals and growth outlook. The price band, yet to be announced, will play a key role in shaping demand and overall market response.
For Fractal Analytics, this IPO is about more than capital. It’s a moment of validation, proving that an Indian AI company can scale globally, serve the world’s biggest tech players, and still move toward sustainable profitability. How the market responds could set the tone for future AI listings from India.
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