India's first AI IPO: Fractal Analytics announces dates for Rs 2,834 crore public issue

Fractal Analytics Announces Initial Public Offering Dates

Fractal Analytics, one of India's leading artificial intelligence firms, has set the stage for what is expected to be India's first pure-play AI IPO. The company has announced the dates for its initial public offering, which will open for subscription on February 9 and close on February 11.

Key Details of the IPO

• The Rs 2,834 crore public issue will comprise a fresh issue of shares worth Rs 1,023 crore and an offer-for-sale of Rs 1,810 crore by existing shareholders.
• The IPO will be managed by Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India) Securities.

About Fractal Analytics

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics has built itself into a global AI and decision intelligence company over the past two decades.

• The company provides end-to-end analytics, artificial intelligence, and data-driven decision-making solutions to large enterprises across sectors.
• Fractal's client base includes some of the world's largest technology and consumer companies, such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla.

Future Plans and Use of Proceeds

The company plans to use the proceeds from the fresh issue to strengthen its global operations, including funding its US subsidiary, Fractal USA, investing in laptops and infrastructure for employees, and expanding office space in India.

• A portion of the funds will also be used to scale up its AI and GenAI product pipeline and to pursue acquisitions as part of its inorganic growth strategy.

Financial Performance

Fractal has shown a sharp improvement in performance, with revenue of Rs 2,765 crore for the year ended March 2025, a growth of nearly 26% over the previous year.

• Profit after tax turned positive at Rs 22 crore, compared with a loss of Rs 5.47 crore in FY24, supported by better margins and operating leverage.
• EBITDA margin improved to 17.4% from 10.6% a year earlier.

Market Insights

The IPO comes at a time when global investment in AI and digital infrastructure is accelerating, with India emerging as a key market.

• Large global technology firms are committing billions of dollars to AI data centres and cloud infrastructure.