Mumbai: Fractal Analytics, a provider of artificial intelligence and analytics services to the likes of Tesla Inc. to Apple Inc., has filed its draft IPO papers with India’s market regulator.
That puts the Mumbai- and New York-based firm on the path to become the first listed AI company in India.
The Fractal Analytics IPO will see the enterprise AI company raise as much as ₹4,900 crore by way of a fresh issue of shares worth ₹1,279.3 crore and an offer for sale (OFS) of shares worth ₹3,620.7 crore by marquee investors such as TPG, Apax Capital and Gaja Capital and some angel investors.
The company is eyeing a pre-IPO anchor placement of up to ₹255.8 crore. The price band and the tentative timeline of the offering wasn’t immediately available. A successful IPO would peg the company’s valuation at $3.5 billion, according to Bloomberg.
Founded in 2000 by five graduates of the Indian Institute of Management, Ahmedabad, Fractal Analytics offers AI products and services to help enterprises improve operational efficiency, design new products, and build sustainable supply chains. It has partnered with OpenAI, using its models to build generative AI solutions.
The company, whose global customer base includes Citigroup Inc., Royal Philips NV and Nestle SA, turned unicorn-a startup with more than a billion-dollar valuation-in 2022. Three co-founders are no longer with the company, leaving Group Chief Executive Officer Srikanth Velamakanni and Fractal CEO Pranay Agrawal at the helm. The men, who each own 10% of the company, aren’t offloading any stake in the Fractal Analytics IPO.
To be sure, unlike its tech-driven startup peers, Fractal Analytics is a profitable company.
The company’s revenue from operations increased 25.9% year-on-year to ₹2,765 crore in FY25, even as net profit jumped to 22 crore from ₹5.47 crore in FY24. The EBITDA margin -a key measure of operational profitability of a company-stood at 17.6% in FY25 as against 10.6% in FY24.
Kotak Mahindra Capital Co. Ltd., Morgan Stanley India Co. Pvt. Ltd., Axis Capital Ltd. and Goldman Sachs (India) Securities Pvt. Ltd. are the book-running lead managers to the Fractal Analytics IPO.