Fractal Analytics gets SEBI approval for IPO

Fractal Analytics has secured approval from the Securities and Exchange Board of India (SEBI) for its planned initial public offering (IPO), marking a major step in the enterprise AI company’s effort to deepen its presence in public markets.

The proposed offer consists of a fresh issue of equity shares worth Rs 1,279.3 crore and an offer for sale (OFS) of shares valued at Rs 3,620.7 crore by existing investors.

The OFS reflects a substantial divestment by several long-standing shareholders. Quinag Bidco plans to sell shares worth Rs 1,462.6 crore, while TPG Fett Holdings intends to offload shares worth Rs 1,999.6 crore.

Individual shareholders, Satya Kumari Remala and Rao Venkateswara Remala, together plan to sell shares worth Rs 29.5 crore. GLM Family Trust aims to sell shares worth Rs 129 crore.

The IPO structure indicates a balanced mix of primary fundraising and secondary sales, suggesting both capital raising ambitions and partial investor exits.

Fractal intends to deploy the proceeds from the fresh issue towards a range of expansion and operational priorities. A portion will be invested in its US subsidiary for repayment of borrowings. Funds have also been earmarked for routine capital expenditure, such as laptop purchases, along with new office premises in India. 

Additional investments will support research and development and sales and marketing under its Fractal Alpha initiative. The company has also outlined a strategy to pursue inorganic growth through acquisitions, signalling continued interest in scaling its capabilities in an increasingly competitive AI market.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal has built a reputation as a globally recognised AI solutions provider. It works with several of the world’s largest enterprises across consumer goods, retail, technology, media, telecom, healthcare, life sciences, and financial services. 

The AI firm is backed by private equity investors such as TPG, Apax and Gaja and has maintained a focus on combining domain expertise with advanced data and AI-based solutions. Fractal has served major global technology names, including Microsoft, Apple, NVIDIA, Alphabet, Amazon, Meta, and Tesla.

The company has reported steady financial improvement. Revenue from operations rose 25.9% to Rs 2,765 crore in FY25 compared with Rs 2,196 crore in FY24. It reported a profit after tax of Rs 22 crore in FY25 from a loss of Rs 5.47 crore in FY24. Margins also strengthened, with PAT margin improving to 12.6% and EBITDA margin rising to 17.4%.

Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs India are acting as the book-running lead managers for the issue.

Despite valuation worries and sector setbacks, 2025’s startup IPOs have delivered decisive wins—multi-bagger VC returns, founder-billionaires, strong subscriptions, and renewed public-market faith. Startups, including Lenskart, Groww, PhysicsWallah, Ather Energy, and Urban Company, have gone public this year.