Latest news with #ApaxFunds-backed
Mint
5 days ago
- Business
- Mint
AI firm Fractal Analytics files draft papers with Sebi for ₹4,900 crore IPO
Mumbai-based artificial intelligence and analytics firm Fractal Analytics on Wednesday filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) targeted by the end of this financial year. The company seeks to raise ₹ 1,279 crore in fresh capital, while existing investors will collectively sell shares worth ₹ 3,620 crore under the offer for sale (OFS) option, the filing showed. Selling shareholders include Quinag Bidco Ltd (an Apax Partners vehicle), TPG, GLM Family Trust, Satya Kumari Remala, and Rao Venkateswara Remala. Last month, Mint was the first to report that the company is preparing to file draft papers for a listing after several delays in the process and has hired Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India) to help with the issue. The company is targeting a valuation of more than $3 billion. The Apax Funds-backed firm had first planned to go public in 2021 but deferred its plans amid weak market conditions. Over the past year, several other companies have also delayed initial public offerings (IPOs), recalibrated their valuations, and downsized issue sizes in response to changing market sentiment. Fractal will now join a growing list of Indian startups, including Pine Labs, Curefoods, Capillary Technologies, Lenskart, Shiprocket, Groww, and Urban Company, that have filed draft IPO papers in recent months. Others such as PhysicsWallah and Bluestone are also expected to go public soon. The company plans to use the net proceeds from the public issue to invest in its subsidiary, Fractal USA. This investment will cover costs incurred to purchase laptops, establish new office space in India, fund research and development, and support sales and marketing activities under Fractal Alpha. Additionally, the funds will be used to finance inorganic growth through potential acquisitions and other strategic initiatives, as well as general corporate expenses. Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal, Nirmal Palaparthi, Pradeep Suryanarayan, and Ramkrishna Reddy, Fractal provides AI-driven data solutions to clients across consumer goods, retail, financial services, and insurance. Its customer base includes around 150 Fortune 500 companies such as Google and Wells Fargo. Its target group includes companies with either $20 billion in market capitalisation or $10 billion in revenues, or those with at least 30 million customers. The company says it allocates about 10–12% of revenues toward research and development. Over the past few years, Fractal has raised over $600 million from investors including TA Associates, TPG, and Malaysia's Khazanah Nasional Berhad through primary and secondary transactions, according to data from Tracxn. In 2016, Khazanah invested $100 million at a $300 million valuation. Fractal entered the unicorn club six years later after a $360 million investment from TPG. The company's revenue from operations increased by 25.9% to ₹ 2,765 crore in FY25, compared to ₹ 2,196 crore in FY24. Similarly, profit after tax (PAT) turned positive to ₹ 220 crore in FY25 from a loss of ₹ 54.7 crore in FY24.
Mint
5 days ago
- Business
- Mint
AI firm Fractal Analytics files draft papers with Sebi for ₹4,900 crore IPO
Mumbai-based artificial intelligence and analytics firm Fractal Analytics on Wednesday filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) targeted by the end of this financial year. The company seeks to raise ₹ 1,279 crore in fresh capital, while existing investors will collectively sell shares worth ₹ 3,620 crore under the offer for sale (OFS) option, the filing showed. Selling shareholders include Quinag Bidco Ltd (an Apax Partners vehicle), TPG, GLM Family Trust, Satya Kumari Remala, and Rao Venkateswara Remala. Last month, Mint was the first to report that the company is preparing to file draft papers for a listing after several delays in the process and has hired Kotak Mahindra Capital, Morgan Stanley India, Axis Capital, and Goldman Sachs (India) to help with the issue. The company is targeting a valuation of more than $3 billion. The Apax Funds-backed firm had first planned to go public in 2021 but deferred its plans amid weak market conditions. Over the past year, several other companies have also delayed initial public offerings (IPOs), recalibrated their valuations, and downsized issue sizes in response to changing market sentiment. Fractal will now join a growing list of Indian startups, including Pine Labs, Curefoods, Capillary Technologies, Lenskart, Shiprocket, Groww, and Urban Company, that have filed draft IPO papers in recent months. Others such as PhysicsWallah and Bluestone are also expected to go public soon. The company plans to use the net proceeds from the public issue to invest in its subsidiary, Fractal USA. This investment will cover costs incurred to purchase laptops, establish new office space in India, fund research and development, and support sales and marketing activities under Fractal Alpha. Additionally, the funds will be used to finance inorganic growth through potential acquisitions and other strategic initiatives, as well as general corporate expenses. Founded in 2000 by Srikanth Velamakanni, Pranay Agrawal, Nirmal Palaparthi, Pradeep Suryanarayan, and Ramkrishna Reddy, Fractal provides AI-driven data solutions to clients across consumer goods, retail, financial services, and insurance. Its customer base includes around 150 Fortune 500 companies such as Google and Wells Fargo. Its target group includes companies with either $20 billion in market capitalisation or $10 billion in revenues, or those with at least 30 million customers. The company says it allocates about 10–12% of revenues toward research and development. Over the past few years, Fractal has raised over $600 million from investors including TA Associates, TPG, and Malaysia's Khazanah Nasional Berhad through primary and secondary transactions, according to data from Tracxn. In 2016, Khazanah invested $100 million at a $300 million valuation. Fractal entered the unicorn club six years later after a $360 million investment from TPG.
