Fractal Analytics files DRHP with SEBI to raise Rs 4,900 crore through IPO

Fractal Analytics, the Mumbai and New York-based AI–driven analytics company, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a Rs 4,900 crore (about $590 million) initial public offering (IPO), in what would be its second bid to go public.

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The offering will comprise a fresh issue of shares worth up to Rs 1,279.3 crore and an offer for sale of up to Rs 3,620.7 crore. Private equity backers Apax Partners and TPG will account for the bulk of the sale, offloading shares worth Rs 1,462.6 crore and Rs 1,999.6 crore, respectively, through their affiliates.

GLM Family Trust and early investors Satya Kumari Remala and Rao Venkateswara Remala will also sell stakes.

Proceeds from the fresh issue are earmarked for several initiatives, including repayment of borrowings at its U.S. subsidiary, setting up new offices in India, investment in research and development, and expanding sales and marketing. A portion will also be directed toward potential acquisitions.

Founded in 2000 by IIM Ahmedabad alumni, Fractal provides AI-powered analytics and decision-support tools to global enterprises. Its portfolio includes Cogentiq, an enterprise agentic AI platform; Iqigai, a generative AI–powered recruiting platform; and Kalaido.ai, a text-to-image generator. Google and Wells Fargo are some of its notable clients.

The company has raised about $685 million from investors, including TA Associates and Khazanah Nasional Berhad. It crossed the $1 billion valuation mark in 2022 and was valued at $2.44 billion in a secondary share sale last month.

Fractal reported operating revenue of Rs 2,765.4 crore in the fiscal year ended March 2025, up 25.9% from the previous year, and a net profit of Rs 220.6 crore, reversing a loss of Rs 54.7 crore.

Kotak Mahindra Capital, Morgan Stanley India, Axis Capital and Goldman Sachs (India) are the lead managers for the offering.