Fractal Analytics, a leading provider of artificial intelligence and analytics services, has filed for an initial public offering (IPO) in Mumbai that could value the company at more than $3.5 billion.
The offering, one of the largest from India’s AI sector, seeks to raise about Rs 4,900 crore ($560 million), according to the company’s listing document published on Tuesday.
IPO structure and investor participation
The proposed IPO will include a fresh issue of shares worth Rs 1,279 crore, with the remaining Rs 3,621 crore coming from an offer for sale by existing shareholders.
Major backers participating in the sale include private equity firms TPG Inc. and Apax Partners, along with two prominent angel investors.
Fractal’s founders, Group Chief Executive Officer Srikanth Velamakanni and Fractal CEO Pranay Agrawal, each holding about 10% of the company, will not sell shares in the IPO.
The company aims to leverage strong investor interest in AI-related businesses, alongside a rebound in India’s IPO market.
Jefferies Financial Group projects that as much as $18 billion could be raised through new listings in the second half of 2025, after a subdued start to the year.
Fractal’s background and operations
Founded in 2000 by five Indian Institute of Management Ahmedabad graduates, Fractal became India’s first AI unicorn in 2022.
While three of the co-founders have since exited, Velamakanni and Agrawal remain at the helm.
The company operates from dual headquarters in Mumbai and New York and serves a global client base that includes Citigroup Inc., Royal Philips NV, and Nestle SA.
Fractal’s offerings span AI products and analytics services designed to improve operational efficiency, enable new product development, and support sustainable supply chains.
The firm has also partnered with OpenAI, integrating its models to develop generative AI solutions.
In the fiscal year ending March 2025, Fractal reported revenue of Rs 2,765 crore, an increase of 25.9% from the prior year, and net profit of Rs 220 crore.
The company has submitted proposals under the IndiaAI Mission to create an indigenous healthcare large language model and a large reasoning model, aligning with the government’s goal of building homegrown AI technologies.
Market outlook and strategic positioning
The IPO comes amid surging interest in AI and digital transformation technologies.
As global demand for AI-driven solutions accelerates, Fractal is positioning itself as a leading enterprise partner, leveraging both its domestic and international presence.
The Indian IPO market, expected to see substantial fundraising in the latter half of 2025, provides a favorable backdrop for Fractal’s debut.
Analysts note that the company’s track record of revenue growth, high-profile client roster, and alignment with national AI development initiatives could attract significant investor interest.
Kotak Mahindra Bank, Morgan Stanley, Axis Capital, and Goldman Sachs Group Inc. are serving as the lead arrangers for the IPO.
The offering will mark a significant milestone for India’s AI sector, as Fractal seeks to expand its capabilities and scale its operations in a rapidly evolving global market.
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