- The company specializes in providing AI-driven business insights across industries such as BFSI, healthcare, retail, technology, and consumer packaged goods. With its strong global presence, innovative platforms like Fractal.ai, Qure.ai, and Cuddle.ai, and a proven track record of scalable growth, Fractal has become a trusted partner for enterprises seeking digital transformation.Its name was changed to ‘Fractal Technologies Limited’ on March 28, 2001, to better align with its business.The name was then changed to ‘Fractal Analytics Limited’ on May 7, 2004, for the same reason.
Fractal Analytics – Key Information
Employee Stock Options Plans of our Company
Our Company has four employee stock options plans:
- Fractal Analytics Limited Time Based Key Employee Stock Incentive Plan 2019 (Time Based MIP – 2019)
- Fractal Analytics Limited Performance Based Key Employee Stock Incentive Plan 2019 (Performance Based MIP – 2019)
ESOP – 2007
- Approved by Shareholders on February 11, 2008.
- Last amended by resolutions on August 1, 2025 (Board) and August 8, 2025 (Shareholders).
- As of the Draft Red Herring Prospectus date, no further grant of options is proposed.
Fractal’s AI IP portfolio
Fractal’s business can be broadly categorized under two buckets, namely:
- service offerings, accelerators, and licensable software
Fractal Alpha: focused on incubated and acquired licensable offerings deployed across multiple clients
Key Business Function-Specific Developments and Growth Drivers
Key developments driving AI software adoption in customer experience:
- Self-serve customer service: Advances in NLP/NLG enable AI-powered chatbots and virtual assistants to deliver 24×7 customer support, manage high inquiry volumes, cut operational costs, and improve response times while addressing complex queries.
- Agent assistance: AI tools assist agents with real-time knowledge management, automated transcription, task automation, sentiment analysis, and categorization of interactions to boost satisfaction.
Sales and Marketing
- Autonomous sales processes: AI automates repetitive tasks like lead generation, email outreach, and pricing optimization, boosting targeting and engagement rates.
- Hyper-targeted campaigns: AI enables personalized campaigns, advertisements, and content, analyzing demographics and behavior for more effective customer engagement.
IPO and Financial Details
- Fresh Issue: Aims to raise approximately ₹1,279.30 crore.
- Offer for Sale (OFS): Aggregates up to ₹3,620.70 crore by existing shareholders.
- Financial Turnaround: The company reported a net profit of ₹220.6 crore in FY25, a significant recovery from a net loss of ₹54.7 crore in FY24.
- Revenue Growth: Revenue from operations has shown consistent growth:
- ₹1,986 crore in FY23
- ₹2,196.3 crore in FY24
- ₹2,765.4 crore in FY25
Pre-IPO Placement Details
- The company, in consultation with the Book Running Lead Managers (BRLMs), may consider a Pre-IPO Placement of specified securities worth up to ₹2,558 million.
- Such placement will be made in accordance with applicable law and at the company’s discretion, before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (RoC).
- If the Pre-IPO Placement is completed, the amount raised will be reduced from the Fresh Issue, subject to compliance with 20% of the Fresh Issue limit under the SCRR.
- Prior to allotment, the company will inform subscribers that there is no guarantee the IPO will proceed or result in a listing on the stock exchanges.
- Relevant disclosures about the Pre-IPO Placement (if undertaken) will be included in the Red Herring Prospectus, Prospectus, and intimated to the Stock Exchanges in accordance with the SEBI ICDR Regulations.
Key Risks
- Market Risk: The shares have no prior trading history, so the IPO price is not a guarantee of future market performance.
- Client Concentration: In FY25, 53.8% of the company’s revenue came from its top 10 clients, indicating a reliance on a concentrated client base.
For more information: Fractal AI
Pros & Cons of Investing in an IPO
Pros: Investing early in a growing company offers the dual advantage of high returns and increased liquidity.
Cons: Risk of overvaluation, market volatility, and limited track record of public performance.
IPO vs. Direct Listing vs. SPAC: What’s the Difference?
SPACs (Special Purpose Acquisition Companies) are shell companies that acquire private firms to take them public. Fractal has chosen the IPO route, ensuring transparency and market-driven pricing.
Company-Specific Attraction
The Story Behind Fractal Analytics: From Startup to IPO
From its humble beginnings in Mumbai in 2000 to becoming a global AI-first enterprise, Fractal Analytics has grown steadily by solving complex business problems with AI and data-driven insights. Its IPO marks a new chapter in its growth journey.
5 Reasons Why Investors Are Watching Fractal Analytics IPO Closely
1. Strong double-digit revenue growth.
2. Leadership in AI-powered analytics.
3. Blue-chip client base across BFSI, healthcare, and retail.
4. Backing by global private equity investors like Apax and TPG.
5. High-margin business model with scalable platforms.
How Fractal Plans to Use IPO Funds for Growth
The company plans to utilize fresh issue proceeds to expand its AI platforms, enhance R&D, repay borrowings, and strengthen its global delivery footprint. This positions Fractal for long-term sustainable growth.
Comparing Fractal IPO with Big Names
Fractal’s IPO is being benchmarked with notable Indian and global IPOs like Zomato, Paytm, and Uber. While these companies disrupted their industries, Fractal is expected to create value in the enterprise AI and analytics market.
Investor-Focused Deep Dives
Key Financials You Should Know About Fractal Analytics IPO
profits surged to ₹220 crore in FY25 compared to losses in FY24, reflecting strong operational efficiency. The company’s net worth has grown steadily, highlighting financial resilience.
Who Benefits from Fractal Analytics IPO?
Promoters and early investors (like Apax, TPG, and GLM Trust) will partially offload stakes. Employees gain from ESOP liquidity, while retail investors can participate in India’s leading AI success story.
Market Outlook: Is It the Right Time to Invest in IPOs?
The Indian IPO market has been bullish in recent years. With increasing investor appetite for AI-driven businesses, Fractal’s IPO is well-timed to attract strong demand.
Core Business & Operational Metrics
- R&D Commitment: The company’s strategic focus is on innovation, with 7% to 10% of its revenue consistently invested in research and development. This has led to the development of proprietary platforms like Cogentiq and Kalaido.ai.
- Global Footprint: With a presence in 17 global offices, the company’s business is geographically diversified, with 65% of its total revenue originating from the US market.
Engagement & Shareability
Fractal Analytics IPO in Simple Infographics
Visual representation of Fractal’s IPO structure, key financials, and growth drivers can help simplify complex data for retail investors.
What Retail Investors Are Saying About Fractal Analytics IPO
Social media buzz indicates strong anticipation among investors, with many highlighting Fractal’s leadership in AI and the potential for strong listing gains.
The Psychology of IPO Investing: Why FOMO Drives Markets
Investor psychology plays a huge role in IPO participation. Fear of missing out (FOMO) often drives demand beyond fundamentals, making it crucial for investors to stay rational and research-driven.
Conclusion
With strong fundamentals, an expanding client base, and cutting-edge AI products, it presents a compelling opportunity for investors. However, like all IPOs, risks exist, and informed decision-making will be key.
Fractal Analytics IPO 2025 marks a pivotal moment in India’s technology-driven capital market, representing the growing investor appetite for AI, data analytics, and digital transformation companies. Proceeds will be deployed towards debt repayment, research & development, expansion of office infrastructure, and inorganic growth through acquisitions.
FAQ – Fractal Analytics IPO 2025
1. Which major investors are selling their shares in the OFS?
The largest selling shareholders in this IPO include:
- TPG Fett Holdings Pte. Ltd. (an entity of TPG) — selling shares valued at up to ₹1,999.6 crore.
- Quinag Bidco Ltd. (an Apax Partners vehicle) — selling shares worth up to ₹1,462.6 crore.
2. What does Fractal Analytics do?
Fractal Analytics is a multinational AI and advanced analytics company that builds data-driven solutions to help enterprises make better decisions. Its services span sectors such as consumer goods, retail, healthcare, finance, and telecommunications, and include platforms and solutions for predictive analytics, generative AI, and automation.
3. How will the IPO proceeds be used?
Proceeds from the IPO are expected to be used for business expansion, research & development, repayment of certain borrowings, and scaling Fractal’s AI platforms and global delivery footprint.
4. What is the biggest risk for investors?
Key risks include intense competition in the AI & analytics market, regulatory and data-privacy challenges across jurisdictions, and the possibility of aggressive IPO valuation which could limit near-term listing gains.
5. Should retail investors apply?
Retail investors seeking exposure to India’s enterprise AI story may consider applying, but they should evaluate valuation, their investment horizon, and personal risk tolerance. It’s advisable to do independent research or consult a financial advisor before subscribing.