On August 13, Fractal Analytics, a name familiar with India’s homegrown artificial intelligence innovation, formally rolled out its ambitions for the stock market. The company filed its Draft Red Herring Prospectus (DRHP) with SEBI, aiming to raise a massive ₹4,900 crore through its upcoming initial public offering. This isn’t just another tech listing: Fractal’s IPO is set to be a landmark moment, marking the debut of India’s first pure-play AI unicorn on public bourses.
Breaking Down the Numbers
IPO Structure: Fractal’s offering is split into a fresh issue of shares worth ₹1,279 crore, alongside an offer for sale (OFS) of ₹3,621 crore primarily from heavyweight investors TPG and Apax Partners. Notably, the company’s founders, Srikanth Velamakanni and Pranay Agrawal, have decided not to part with their shares, signaling long-term commitment.
Valuation & Performance: The IPO could value Fractal at over ₹29,000 crore ($3.5 billion). Its financial trajectory is impressive: in FY25, Fractal’s revenue soared 25.9% year-on-year to ₹2,765 crore, and the company swung to a ₹22 crore profit from a loss the previous year.
What Makes Fractal Unique?
Founded in 2000 by Velamakanni and Agrawal, Fractal began as a small analytics venture and has evolved into a global AI powerhouse. From Mumbai and New York, Fractal’s team delivers everything from next-gen data analytics to AI-driven product development and operational solutions for clients like Citigroup, Royal Philips, Nestlé, and several tech giants.
Innovation at Core: Fractal is not just riding the AI wave it is shaping the tide. The company actively invests in expanding its software portfolio, especially in generative AI, and is working with OpenAI to develop cutting-edge solutions.
Indigenous Mission: Beyond profits, Fractal aligns with India’s national vision, having submitted proposals under the IndiaAI Mission to build large native AI models in healthcare and general reasoning positioning itself as a partner in India’s digital future.
Why Investors Are Watching Closely
With global interest in AI reaching fever pitch and the Indian IPO market rebounding, Fractal represents a rare intersection of strong financials, future-ready technology, and ambitious leadership. Managed by a consortium including Kotak Mahindra Bank, Morgan Stanley, Axis Capital, and Goldman Sachs, the IPO is set to create benchmarks for tech valuations in India and may serve as a catalyst for more domestic tech unicorns seeking public listings.
The Road Ahead
Fractal plans to use the proceeds for expansion, notably, investing in its U.S. subsidiary, settling borrowings, establishing new offices in India, driving R&D, boosting sales and marketing, and funding strategic acquisitions. This is a company betting on scale, skill, and strategy with its founders firmly in the driver’s seat.
Fractal Analytics’ IPO isn’t just about numbers. It’s about India’s promise in AI, and a new milestone for local innovation on the world stage. Investors, entrepreneurs, and tech enthusiasts alike will be watching this listing closely not just for what it means for the company, but for the future of India’s technology story.
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