Indian AI analytics firm Fractal targets $555m IPO next month
- ByStartupStory | October 28, 2025
Fractal Analytics, one of India’s pioneering artificial intelligence and advanced analytics companies, is gearing up for a major milestone—its initial public offering (IPO). According to sources familiar with the matter, Fractal plans to raise around ₹49 billion (approximately $555 million) in an IPO expected to launch as early as November 2025. The company is aiming for a valuation of roughly $3 billion, positioning the listing as one of India’s marquee tech IPOs this year.
A Decade-Long Journey to AI Leadership
Founded in 2000 by a group of Indian Institute of Management Ahmedabad (IIM-A) graduates, Fractal Analytics started as a niche analytics provider before rapidly evolving into a global AI powerhouse. Over the years, the company has focused on developing proprietary AI platforms and advanced analytics solutions for Fortune 500 companies across retail, consumer packaged goods, financial services, healthcare, and technology sectors.
Its platforms like “Cuddle.ai” and “Qure.ai” leverage machine learning, natural language processing, and data science to help clients make smarter decisions, improve customer experience, and gain a competitive edge in their industries.
The firm’s strong research focus is evident in its sustained investments, with 7-10% of annual revenue allocated to R&D and hiring nearly 2,000 employees annually on average, emphasizing its commitment to innovation.
Financial Performance & Market Outlook
Fractal reported revenues of ₹2,241.9 crore in fiscal 2024-25, marking a 10% year-on-year increase. While the company faced a net loss of ₹54.7 crore during the same period, it showed improving EBITDA margins and signs of operational efficiency. On a standalone basis, Fractal maintained profitability, underscoring the strength of its core business.
The company’s primary revenue comes from AI-driven analytics services, particularly in consumer packaged goods, retail, and technology sectors, which collectively constitute close to 70% of total income. Growth opportunities are significant in emerging domains like healthcare AI, financial risk analytics, and AI-enabled automation.
IPO Details and Capital Use
Fractal’s proposed IPO involves a fresh issue of shares worth ₹1,280 crore alongside an offer for sale of ₹3,620 crore from existing investors, including private equity firms TPG Capital and Apax Partners, who have backed the company through various growth stages.
The proceeds from the IPO are expected to be used for repayment of borrowings against its U.S. subsidiaries, investment in R&D and product innovation, and expansion of sales and marketing capabilities, particularly in the Indian market.
The offering is anticipated to be managed by leading investment banks, including Axis Bank, Goldman Sachs, Kotak Mahindra Capital, and Morgan Stanley.
Strategic Positioning in the AI Ecosystem
India is witnessing a surge in AI adoption across sectors—from fintech to ecommerce, healthcare to manufacturing—fuelled by increasing digitization, cloud adoption, and enterprise modernization. Fractal’s early-mover advantage and deep expertise position it well to capture growing demand for AI-powered insights and decision-making tools.
The company is also developing advanced AI platforms such as “Ramanujan,” which is designed to enhance human reasoning and coding capabilities, and “Cogentiq,” an agentic AI platform that supports autonomous problem-solving—a move signaling Fractal’s aspiration to remain at the forefront of next-generation AI technologies.
Market Sentiment and Industry Significance
The 2025 IPO market in India has been robust, with fintech, consumer internet, and technology listings dominating fundraising activity. With total proceeds from new listings reaching nearly $16 billion so far this year and expectations to surpass the previous year’s record $21 billion, there is strong investor appetite for promising SaaS and AI-driven companies.
Fractal’s IPO is poised to be India’s first AI unicorn with a valuation exceeding $3.5 billion to enter the public markets, serving as a bellwether for the country’s AI startup ecosystem.
Industry analysts consider the IPO a landmark event, demonstrating increasing maturity among Indian AI firms and heralding a new phase of capital markets participation by tech-driven enterprises.
Leadership’s Vision
Group CEO Srikanth Velamakanni and CEO Pranay Agrawal, who retain substantial stakes of roughly 10% each, are leading Fractal’s next chapter with a strategic focus on sustainable growth and innovation-led expansion. Their combined vision includes deepening domain expertise, expanding global delivery, and investing in AI technologies with profound business impact.
Their leadership is viewed as a steadying force guiding Fractal through accelerated growth phases, marketplace competition, and public market scrutiny.
Looking Ahead
Fractal’s IPO later this year embodies a landmark achievement in India’s AI startup journey—from early analytics services to global AI solutions leadership. The listing is expected to raise the company’s profile internationally and provide fresh capital to fuel next-level product innovation and strategic partnerships.
As the AI and analytics market continues to morph rapidly, backed by advances in cloud computing and data infrastructure, companies like Fractal are well-positioned to help enterprises across industries unlock value from complex data, driving smarter growth in an increasingly digital world.
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