Fractal Analytics, an enterprise AI company, has filed draft papers for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 4,900 crore ($560 million).

The IPO comprises of fresh issue of shares worth Rs 1,279 crore and an offer for sale (OFS) of Rs 3,620.7 crore by existing shareholders including TPG and Apax Partners and two prominent angel investors, according to the draft red herring prospectus (DRHP).

As part of the OFS, Apax Partners-owned Quinag Bidco will sell equity shares worth up to Rs 1,462.6 crore and TPG will offload equity shares worth up to Rs 1,999.6 crore. Angel investors Satya Kumari Remala and Rao Venkateswara Remala will sell equity shares worth up to Rs 29.5 crore and GLM Trust will sell equity shares worth up to Rs 129 crore.

Fractal Analytics plans to use the proceeds from the IPO for funding inorganic growth through acquisitions, working capital requirements, and general corporate purposes.

The company's revenue from operations grew 25.9% to Rs 2,765 crore in FY25, compared to Rs 2,196 crore in the previous financial year. It reported a net profit of Rs 220 crore in FY25 against a loss of Rs 54.7 crore in FY24.

Fractal Analytics established its Fractal Sciences” program in 2012 to strengthen its R&D creation and to cater AI demand.

It also built its own foundation models -- Vaidya.ai (medical multi-modal foundation model ecosystem

consisting of LLMs, VLMs and medical reasoning systems) and Fathom-R1-14B (open source large reasoning

foundation model). 

The company is investing further in developing reasoning capabilities in foundation models, it added.

The company had also developed its own Generative AI stack in fiscal 2023 and introduced new Gen AI solutions as well as incorporated Gen AI into several of its other existing AI products.

Kotak Mahindra Capital, Morgan Stanley, Axis Capital, and Goldman Sachs are the book running lead managers to the public issue.

Since its establishment in 2000 by co-founders Srikanth Velamakanni and Pranay Agrawal, Fractal has raised a total of $855 million across multiple funding rounds. It had turned into a unicorn in 2022 with a $360 million funding from TPG.

Last year, Fractal Analytics merged artificial intelligence company Eugenie AI with itself. The merger was aimed at the company's commitment to harnessing the power of artificial intelligence.