Key Highlights

• SEBI approves Fractal Analytics’ ₹4900 crore IPO

• India’s first pure play AI company to list on stock exchanges

• Issue includes ₹1279.3 crore fresh issue and ₹3620.7 crore OFS

• FY25 revenue at ₹2765 crore, up 26% YoY; returns to profitability

• Global client base including Microsoft, Apple, Nvidia, Amazon

• IPO proceeds to fund debt repayment, GenAI R&D, expansion and acquisitions

Fractal Analytics IPO Marks India’s First AI Focused Public Listing

India is preparing for a landmark moment as Fractal Analytics becomes the first pure play artificial intelligence company to enter the public markets. With SEBI granting approval for its ₹4900 crore IPO, the listing represents a major step forward for India’s deep tech ecosystem at a time when global interest in enterprise AI is rising sharply.

SEBI’s nod comes during a period when the stock market is rewarding technology-led, growth-driven companies. As AI adoption accelerates worldwide, Fractal’s public listing signals India’s readiness to support advanced tech firms at scale.

IPO Structure and Financial Snapshot

Fractal Analytics plans to raise ₹4900 crore, making it one of the largest technology IPOs in recent years. The issue includes:

• Fresh issue: ₹1279.3 crore

• Offer for sale: ₹3620.7 crore by existing investors such as TPG and Apax Partners

Industry observers estimate that Fractal’s valuation post listing could cross USD 3.5 billion, reflecting confidence in its business model and long term growth potential.

Financially, Fractal recorded ₹2765 crore revenue in FY25, a strong 26% year-on-year increase. The company also returned to profitability with a ₹22 crore net profit, reversing its FY24 loss.

What Fractal Analytics Does

Founded in 2000 and co-headquartered in Mumbai and New York, Fractal Analytics is a leading enterprise AI and analytics solutions provider. The company builds decision intelligence systems, predictive analytics tools, and generative AI platforms that help global enterprises make smarter and faster business decisions.

Its offerings include:

• Retail and customer analytics

• Supply chain optimisation

• Conversational AI engines

• AI driven customer experience platforms

Unlike consumer-facing AI apps, Fractal focuses on deep enterprise AI—building complex solutions for businesses across technology, healthcare, insurance, consumer goods and more.

Fractal works with some of the world’s largest companies including Microsoft, Amazon, Apple and Nvidia, with over 60% of its revenue coming from the U.S.. This makes it a global operator with strong international reach.

Why This IPO Matters

India’s First Pure AI Listing

Fractal becomes the first AI-only company to go public in India. This milestone signals that the domestic ecosystem is now strong enough for deep tech companies to seek public capital.

Growing Investor Appetite for AI

SEBI’s approval highlights the rising demand for AI-driven business models. Investors are increasingly looking for companies with scalable technology, recurring revenues and high-margin growth potential.

Aligns With Market Focus on Growth Stocks

Market experts believe India’s upcoming market cycles will be led by high quality growth companies, especially those linked to new technologies. Fractal’s timing aligns well with this shift.

Rise of Tech Heavy IPOs

Fractal’s approval follows a series of technology focused IPOs, marking a shift away from traditional sectors towards digital, AI, SaaS and media-tech businesses.

How Fractal Plans to Use the IPO Funds

Fractal has outlined clear priorities for its fresh capital:

• Repay debt at its U.S. subsidiary

• Increase investment in GenAI and R&D

• Expand delivery and innovation hubs in India

• Strengthen its product organisation and go-to market teams

• Pursue acquisitions to deepen capabilities or enter new industries

These steps show the company’s intent to stay ahead in a competitive global AI landscape.

Risks Investors Should Note

While the company has strong growth drivers, potential risks include:

• Heavy reliance on U.S. clients

• Strong competition from global AI and analytics firms

• Execution risks as it scales advanced AI capabilities

• Market volatility during listing of high valuation tech firms

Conclusion

Fractal Analytics’ SEBI-approved IPO is a landmark development for India’s technology markets. As the country’s first AI-focused public listing, it showcases India’s growing strength in deep tech and positions the country as a serious contender in the global AI race.

For investors, the IPO offers rare exposure to the enterprise AI space - an area usually dominated by private equity and large global tech companies. More importantly, Fractal’s listing could open the door for more innovation-led startups to go public, helping shape the next phase of India’s technology evolution.