Fractal Analytics Unveils Dates for India’s First AI IPO: A Rs 2,834 Crore Public Offering
Fractal Analytics, a prominent name in India’s artificial intelligence sector, has revealed the dates for its highly anticipated IPO. This marks the milestone of being India’s first pure-play AI IPO, as the company aims to fuel its global expansion and product development efforts.
Key Details of the AI IPO:
– Issue Size: Rs 2,834 crore
– Opening Date: February 9
– Closing Date: February 11
– Composition:
– Fresh issue of shares: Rs 1,023 crore
– Offer-for-sale (OFS) by existing shareholders: Rs 1,810 crore
Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics has evolved into a global leader in AI and decision intelligence over the past two decades. The company specializes in comprehensive analytics, artificial intelligence, and data-driven decision-making solutions, serving major enterprises across various sectors.
Noteworthy Clients:
– Microsoft
– Apple
– Nvidia
– Alphabet
– Amazon
– Meta
– Tesla
Approximately 65% of Fractal’s revenue originates from clients in the United States, with operations extending across New York and Mumbai.
Use of Proceeds from the IPO:
Fractal plans to utilize the funds raised to enhance its global footprint, including:
– Strengthening its US subsidiary, Fractal USA, through the repayment or prepayment of existing borrowings
– Investing in laptops and infrastructure for its employees
– Expanding office space in India
– Scaling up its AI and GenAI product pipeline
– Pursuing acquisitions as part of its inorganic growth strategy
Fractal has garnered significant support from leading global investors, including TPG, Apax Partners, and Gaja Capital, amassing over $800 million in total funding.
Strong Financial Performance:
For the financial year ending March 2025, Fractal reported impressive growth:
– Revenue: Rs 2,765 crore (up 26% from the previous year)
– Profit After Tax: Rs 22 crore (compared to a loss of Rs 5.47 crore in FY24)
– EBITDA Margin: Rose to 17.4% from 10.6% the previous year
The IPO arrives at a time of escalating global investment in AI and digital infrastructure. India is emerging as a significant player in this arena, with major international technology firms investing heavily in AI data centers and cloud infrastructure.
Lead Managers:
The book-running lead managers for this IPO include:
– Kotak Mahindra Capital
– Morgan Stanley India
– Axis Capital
– Goldman Sachs (India) Securities
With the announcement of these dates, Fractal’s IPO is set to gauge market enthusiasm for AI-focused companies in India. As the first of its kind, this offering could pave the way for more AI ventures to enter the public market, further solidifying India’s position in the global tech landscape.
In conclusion, the upcoming AI IPO by Fractal Analytics not only represents a significant financial milestone for the company but also underscores the growing importance of AI in driving innovation and economic growth in India.