As growth moderates, Fractal banks on AI boom
₹2,043 crore from a year earlier, as per the company's latest filings sourced from Tofler. Fractal Analytics reported a profit of ₹194 crore in FY23 from a loss of ₹148 crore a year earlier. It benefited from an exceptional item gain from the loss of control of a subsidiary company, as per the company's filings.
Fractal receives about 95% of its revenues from outside India with 70% coming from the US. Despite receiving a bulk of its revenues from international locations, the company will remain based in India and aims to tap the public markets by the end of this year, people familiar with the matter told Mint. While the Mumbai-based company had initially planned to go public in 2021, it decided to defer its plans owing to poor market conditions, one of the people cited above said.
Last month, Moneycontrol reported on Fractal's plans to raise over $500 million at a $3-$3.5 billion valuation through an initial public offer and appointed investment banks Kotak Mahindra Bank and Morgan Stanley for the listing. Though Velamakanni declined to comment on the IPO plans, he said the company has the scale and readiness to go public and it is certainly a part of the long-term strategy. Fractal Analytics claims to be one of the largest spenders on research and development with about 10-12% of its revenues going into related projects.
It joins the growing list of companies like Freshworks, Gupshup and LatentView Analytics that are riding the AI wave currently. Founded in 2000 by Velamakanni, Pranay Agrawal, Nirmal Palaparthi, Pradeep Suryanarayan and Ramkrishna Reddy, Fractal Analytics serves across seven industries including consumer packaged goods, retail, financial services and insurance. It offers AI-driven data solutions to
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