Fractal’s IPO will comprise a fresh issue of shares worth up to INR 1,279.3 Cr and an offer-for-sale (OFS) component of up to INR 3,620.7 Cr

Apax Partners, TPG, GLM Family Trust, Satya Kumari Remala and Rao Venkateswara Remala will offload shares via the OFS

The IPO proceeds will be utilised to clear borrowings of its US-based subsidiary, set up a new office in India, fuel R&D, and boost sales and marketing initiatives

AI-powered SaaS unicorn Fractal Analytics has filed its DRHP with markets regulator SEBI for INR 4,900 Cr IPO. The company’s public issue will comprise a fresh of shares worth up to INR 1,279.3 Cr and an offer-for-sale (OFS) component of up to INR 3,620.7 Cr.

PE firms Apax Partners and TPG, GLM Family Trust, Satya Kumari Remala and Rao Venkateswara Remala will offload shares as part of the OFS.

While Apax Partners (via Quinag Bidco Ltd) will sell shares worth INR 1,462.6 Cr, TPG (via TPG Fett Holdings Pte. Ltd.) will offload shares worth INR 1,999.6 Cr. GLM Family Trust will sell shares worth INR 129 Cr, while the Remalas will offload shares to the tune of INR 29.5 Cr together.

The company plans to utilise the fresh proceeds from the IPO for the following purposes:

• INR 264.9 Cr has been earmarked for repaying or pre-paying the borrowings of its US-based subsidiary
• INR 57.1 Cr will be used to buy laptops
• INR 121.1 Cr will be set aside for setting up new office premises in India
• INR 355.1 Cr has been earmarked to fuel research and development (R&D) and boost sales and marketing initiatives.
• The remaining amount will be used to fund inorganic growth through acquisitions and for general corporate purposes

Notably, Inc42 reported earlier this week that Fractal would file its DRHP in August for a $400 Mn to $500 Mn IPO and seek a valuation of about $3 Bn.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal offers a range of AI-powered analytics solutions to enterprises globally. Its product suite also includes enterprise agentic AI platform Cogentiq, GenAI-powered recruiting platform Iqigai, text-to-image generator Kalaido.ai, among others. It counts the likes of Google and Wells Fargo among its clients.

The company generates revenue through analytics and consulting services, as well as licence and subscription fees for its proprietary AI products and platforms.

It has raised over $685 Mn in total funding to date from the likes of TA Associates, Malaysia’s Khazanah Nasional Berhad (KNB), among others.

It is pertinent to note that this is the second attempt by the SaaS major to go public. It initially planned to list on the exchanges in 2021 and had even roped in Morgan Stanley, Kotak Mahindra Capital, and Axis Capital as bankers to helm the IPO. However, the company shelved the plan amid market volatility.

Fractal reignited its IPO plans last year and turned into a public company from a private company in May 2024.

In the run up to its listing, the SaaS unicorn’s cofounder and CEO, Srikanth Velamakanni, infused INR 48.7 Cr into the company in July. Subsequently, early backer Apax Partners sold a 6% stake in the company to a consortium of 22 institutional investors in a $170 Mn secondary share sale, which valued the unicorn at $2.44 Bn, last month.

On the financial front, Fractal reported a net profit of INR 220.6 Cr in FY25 as against a net loss of INR 54.7 Cr in the previous year. As per the DRHP, its operating revenue jumped nearly 26% to INR 2,765.4 Cr during the year under review from INR 2,196.3 Cr in FY24.