New Delhi: Fractal Analytics, a pioneer in data analytics and AI solutions, has opened its IPO for subscription, marking a milestone in a remarkable journey that began in 2001 as a modest bedroom startup. The IPO is valued at ₹2,833.90 crore, with a price band of ₹857–900 per share, including an Offer for Sale (OFS) of ₹1,810.40 crore.
A Visionary Bet
The story traces back to 2001, when Onida Group founder and chairman Gullu Mirchandani invested in the fledgling Fractal Analytics, a company that aimed to revolutionize the data analytics space. Initially, the concept was highly academic and untested—banks were required to share vast amounts of client data to leverage Fractal’s analytics solutions. Despite the skepticism, Mirchandani’s $60,000 (₹15 lakh) bet helped lay the foundation for a new sector in India.
By 2006, Fractal Analytics had secured clients including HDFC Bank, ICICI Bank, UTI Bank, Korea Exchange Bank, and Japan’s OCBC Bank, generating revenues of $300,000 (₹7.5 crore). Fast forward to FY 2024-25, the company recorded a total turnover of ₹2,800 crore, bouncing back from a ₹55 crore loss in FY 2023-24.
IPO and Shareholders
Under the IPO, Mirchandani’s GLM Trust is selling 15.5% of its stake, valued at ₹450 crore. Other shareholders, including Apax Partners (₹880.9 crore) and TPG Capital (₹450 crore), are also divesting. Fractal reduced the IPO size by nearly 42% from ₹4,900 crore to make it more attractive to investors.
Use of IPO Proceeds
The funds raised will be strategically deployed. Approximately ₹264.9 crore will go to repay debt in its subsidiary Fractal USA, while ₹355.1 crore will be invested in research and development (R&D) and strengthening sales and marketing under the Fractal Alpha initiative. The IPO opened for subscription on February 9, 2026.
Overcoming Challenges
The path to success was far from smooth. In 2007, a dispute among founders led Mirchandani to back Srikanth Velamakanni, who became CEO, while other founders exited. The company navigated the 2009 global financial crisis, losing key clients like General Motors, which contributed 10% of revenue. Turning adversity into opportunity, Fractal focused on deep client engagement rather than broad expansion, eventually securing a $10 million investment from Malaysian sovereign fund Khazanah Nasional in 2016.
Leadership Driving Growth
Under Velamakanni’s leadership, Fractal embraced AI for data analytics, a move that fueled rapid growth. In 2018, global private equity firm Apax Partners acquired a $20 million minority stake, boosting R&D investment. Today, Velamakanni serves as CEO and Executive Vice-Chairman. Fractal Analytics has become one of India’s fastest-growing AI companies, offering custom AI solutions to improve customer experience, supply chain efficiency, and marketing effectiveness. Its flagship platform, Cogentiq, automates complex processes, positioning Fractal as a product-driven AI company rather than merely a software services provider.
Facing the Next Frontier
Fractal Analytics’ key challenge is to maintain disruption in a rapidly maturing ecosystem. The company is debuting in public markets amid heightened investor interest in AI-driven enterprises, global automation trends, and uncertainty in technology valuations. As demand for data-driven transformation accelerates across industries, Fractal aims to secure a significant share of the high-value analytics and AI services market while aligning with a fast-changing global technology landscape.
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