TPG, Apax Partners-backed AI solutions provider Fractal Analytics files draft papers for Rs 4,900 cr IPO

Fractal Analytics IPO

Artificial intelligence solutions provider Fractal Analytics, which is backed by Apax Partners, TPG, and GLM Family Trust, has filed preliminary papers with the SEBI to raise funds up to Rs 4,900 crore via an initial share sale.

The IPO will consist of fresh issuance of shares worth Rs 1,279.3 crore, and an offer-for-sale of 3,620.7 crore by Quinag Bidco (fund managed by Apax Partners), TPG Fett Holdings Pte (an affiliate of global alternative asset manager TPG Group), and GLM Family Trust, as per the draft red herring prospectus filed on August 12.

Satya Kumari Remala and Rao Venkateswara Remala will also be selling shareholders in the offer-for-sale.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics may consider raising funds up to Rs 255.8 crore in pre-IPO found before the filing of the red herring prospectus with the Registrar of Companies.

The company will utilise Rs 264.9 crore of the fresh issue proceeds for repaying debt of its subsidiary Fractal USA. Further, Rs 57.1 crore will be spent for the purchase of laptops, Rs 121.1 crore for setting up new office premises in India, and Rs 355.1 crore for research and development, and sales and marketing under the Fractal Alpha segment.

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And the remainder funds will be utilised for inorganic growth through unidentified acquisitions and general corporate purposes.

The company that provides AI solutions under two segments -- Fractal.ai (AI services and AI products) and Fractal Alpha (independent AI businesses) -- works with several marquee clients in industries such as consumer packaged goods & retail (CPGR), technology, media and telecom (TMT), healthcare and life sciences (HLS) and banking, financial services and insurance (BFSI). Some of its clients include Citibank, NA (Citi), Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, and Philips.

Fractal Analytics, the pure-play enterprise data, analytics, and AI company, does not have a comparable peer in the listed space.

Promoters' shareholding in the company at the time of DRHP filing was 18.29 percent, and the remaining 81.71 percent shares are owned by public shareholders, including TPG (25.67 percent), Quinag Bidco (18.78 percent), and GLM Family Trust (owned by Gulu Lalchand Mirchandani held 15.7 percent shares).

On the financial front, Fractal Analytics has recorded a profit of Rs 220.6 crore in the fiscal 2025, against a loss of Rs 54.7 crore in the previous year. Revenue in the same period soared by 25.9 percent to Rs 2,765.4 crore, up from Rs 2,196.3 crore.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Axis Capital, and Goldman Sachs (India) Securities are appointed as the merchant bankers for handling the Fractal Analytics IPO.