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

Fractal Analytics, one of India’s best-known artificial intelligence companies, has announced the dates for its initial public offering, paving the way for what is expected to be India’s first pure-play AI IPO. The public issue of Rs 2,834 crore will open for subscription on February 9 and close on February 11. The IPO includes a fresh issue of shares worth Rs 1,023 crore and an offer for sale of Rs 1,810 crore by existing shareholders.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 industries.

Fractal’s customer base includes some of the world’s largest technology and consumer companies such as Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta and Tesla. More than 65% of sales come from customers in the United States, with operations spread across New York and Mumbai.

The company plans to use the proceeds from the new issue to strengthen its global operations. This includes financing its US subsidiary, Fractal USA, to repay or prepay loans, investing in laptops and infrastructure for employees, and expanding office space in India. A portion of the funds will also be used to scale the AI ​​and GenAI product pipeline and pursue acquisitions as part of its inorganic growth strategy.

Fractal is backed by major global investors including TPG, Apax Partners and Gaja Capital, and has raised more than $800 million in funding to date. Over the years, the company has steadily expanded its AI software stack and research and development capabilities, positioning itself as a full-stack AI provider for industries such as consumer goods, retail, telecom, healthcare and financial services.

Financially, the company has shown a strong improvement in performance. For the year ended March 2025, Fractal reported revenues of Rs 2,765 crore, a growth of almost 26% over the previous year. Profit after tax turned positive at Rs 22 crore, compared to a loss of Rs 5.47 crore in FY24, supported by better margins and operating leverage. The EBITDA margin improved from 10.6% a year earlier to 17.4%.

The IPO comes at a time when global investments in AI and digital infrastructure are accelerating. India is emerging as a key market, with major global technology companies investing billions of dollars in AI data centers and cloud infrastructure. Kotak Mahindra Capital, Morgan Stanley India, Axis Capital and Goldman Sachs (India) Securities are acting as lead managers for the issue. Now that the dates have been announced, Fractal’s listing is expected to test public market appetite for AI-focused companies in India.