Fractal Analytics IPO: Rs 4900 crore public offering from Indias first AI unicorn startup
Fractal Analytics, an AI and analytics firm, is coming up with an Rs 4900 crore IPO, including a fresh issue and an offer for sale. The IPO aims to fund investments in its subsidiary, repay debt, establish new offices, boost research and development, and support sales and acquisitions. The company's FY25 revenue reached Rs 2765 crore with a net profit of Rs 220 crore, showcasing significant growth.
New Delhi: Fractal Analytics, an artificial intelligence and analytics provider enterprise, has filed preliminary IPO (Initial Public Offer) papers with the market regulator SEBI. The AI firm is seeking to raise Rs 4900 crore through the public offer.
The IPO constitutes a fresh issue of shares worth Rs 1279.3 crore and an offer for sale (OFS) segment worth Rs 3620.7 crore as per the information obtained from the draft red herring prospectus (DRHP) filed on Tuesday. August 12.
Fractal Analytics IPO
The segment of OFS includes the offloading of shares worth Rs 1,462 crore by Quinag Bidco Ltd., the selling of shares worth Rs 1,999.6 crore by TPG Fett Holdings Pte Ltd, Rs 29.5 crore by Satya Kumari Remala and Rao Venkateswara Remala, and Rs 129.0 crore by GLM Family Trust.
The company is likely to go for a pre-IPO placement of up to Rs 255.8 crore. If done successfully, the fresh issue is set to get reduced. However, there is no information available for its listing and price band as per its DRHP document.
The analytics firm is expected to use the proceeds from the public offering for further investment in their subsidiary, Fractal USA. Additionally, the proceeds will go to repayment of its erstwhile borrowings and for setting up new offices in India. The company also plans to use the proceeds to increase its research and innovation footprint. The remaining funding is set to be used for sales, marketing and acquisition, and general corporate expenditure.
Fractal Analytics Business
Fractal Analytics was founded by the graduates of IIM Ahmedabad. Its cofounders are Srikanth Velamakanni and Pranay Agrawal, who are currently the group's C-suite executives. The company clientele includes large global multinational enterprises like Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla, and it provides its services in several domains spanning consumer packaged goods & retail; technology, media, and telecom; healthcare and life sciences; and banking, financial services, and insurance.
It provides data-driven insights while simultaneously assisting its clients by assisting them through end-to-end AI solutions. Marquee investors like TPG, Apax, and Gaja have shown confidence in the AI firm. The company is set to expand its AI and GenAI software portfolio.
Fractal Analytics FY25 Results
The company financials include revenue going up 26 percent to Rs 2765 crore in FY25. The company minted revenue worth Rs 2196 crore in the corresponding quarter of the year-ago period. The company's net profit figure was at Rs 220 crore in FY25, up from Rs 54.7 crore the company had minted in the corresponding period of the year-ago period. FY24.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities are the leading book managers for Fractal Analytics IPO.
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