Synopsis: Fractal Analytics, a leading Indian AI firm with its IPO now open, provides end-to-end AI solutions across industries and business functions. With proprietary platforms, foundation models, and strong global client engagement, it drives smart decision-making and high revenue growth.
India’s artificial intelligence sector is heating up as one of the country’s most anticipated AI companies opens its IPO to investors. With a growing global client base and rapid expansion, the company is attracting significant attention. Yet despite all the buzz and investor interest, what exactly does this AI firm do?
A Brief History of Fractal Analytics
Founded in 2000, Fractal Analytics is a globally recognized enterprise artificial intelligence company, focused on helping businesses make smarter decisions using AI. The company provides end-to-end AI solutions, combining technical expertise, industry knowledge, and functional capabilities developed over more than 25 years of operations.
Fractal works closely with large global enterprises to guide them through the full AI transformation journey, from initial ideation to adoption, aiming to become a trusted partner in their decision-making processes. The company focuses on its “Must Win Clients,” which are enterprises with annual revenue over USD 10 billion, market capitalization over USD 20 billion, or more than 30 million end-customers.
As of September 30, 2025, Fractal Analytics served 122 Must Win Clients, including Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, and Philips. Additionally, by March 31, 2025, the company had worked with a majority of the “magnificent seven” tech giants: Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla.
The Offerings
Fractal Analytics brings deep expertise across key industries, including consumer packaged goods and retail, technology, media and telecom, healthcare and life sciences, and banking, financial services, and insurance. As of March 31, 2025, the company worked with 10 of the top 20 CPG companies, eight of the top 20 TMT companies, three of the top 20 BFSI companies, 10 of the top 20 HLS companies, and five of the top 20 retail companies based on fiscal 2025 revenue.
The company develops and operates a wide range of AI and analytics platforms designed to help businesses make smarter decisions, boost productivity, and automate complex processes. According to Everest Group, Fractal’s business falls into two main categories. The first, Fractal.ai, accounts for most of the revenue (97.8 percent in FY2025) and includes data-driven AI services, accelerators, and licensable software. The second, Fractal Alpha, focuses on incubated and acquired software offerings that are deployed across multiple clients.
Applied AI: Industry-Specific AI
Fractal’s applied AI solutions tailored for specific industries include Fractal Alpha, Qure.ai, and Trial Run. Fractal Alpha provides AI-driven dynamic demand planning and enterprise revenue growth management, targeting the consumer packaged goods sector. Qure.ai offers AI-based application software for radiology image diagnosis, focused on healthcare.
Trial Run is an ML-enabled experimentation platform that supports return on investment optimization and identification of key attributes across retail, distribution, and CPG use cases. The market size for this segment is projected at Rs. 1,436 billion (USD 17 billion) in FY2025 and Rs. 4,767 billion (USD 57 billion) by FY2030.
Applied AI: Business Function-Specific AI
Within applied AI tailored to business functions, Fractal offers several solutions across customer experience, sales and marketing, IT and software engineering, and human resources. Cogentiq CX provides a generative AI-driven business-specific CRM platform for smart search, knowledge management, and conversational analytics. Cogentiq Business Insights delivers AI-enabled decision intelligence through chatbots and copilots for sales and marketing.
Cogentiq SDLC is a productivity enhancement tool for software development life cycles, and Cogentiq Migration serves as an AI-based accelerator for workload migration and rationalization in IT engineering.
MarshallGoldsmith.ai offers a generative AI voice and video assistant for HR coaching. Kalaido.ai is an image generation application driven by Fractal’s proprietary diffusion model for sales and marketing purposes. The market size for applied AI business function-specific solutions is estimated at Rs. 1,827 billion (USD 22 billion) in FY2025 and Rs. 5,471 billion (USD 65 billion) in FY2030.
Build and Manage AI: AI Platforms
Fractal’s AI platform offerings focus on enabling enterprises to build, manage, and scale AI applications. Cogentiq provides a no/low code AI platform, while Cogentiq Data Foundation is an IT business-specific hybrid data platform. These platforms help organizations design, implement, and maintain AI-driven solutions. The market size for AI platforms is Rs. 4,755 billion (USD 57 billion) in FY2025 and Rs. 12,474 billion (USD 149 billion) in FY2030.
Build and Manage AI: Foundation Models
Fractal also develops foundation models that form the backbone of AI applications. Vaidya.ai, a multi-modal medical assist model, supports healthcare decision-making and diagnostics. Kalaido.ai’s diffusion model enables generative AI-based image creation. These models are instrumental in accelerating AI adoption across industries. The market size for foundation models is projected at Rs. 391 billion (USD 5 billion) in FY2025 and Rs. 954 billion (USD 11 billion) in FY2030.
Cognetiq Migration, Kalaido.ai, and Vaidya.ai are currently in the proof-of-concept stage for their generative AI-specific intellectual property, with limited or no demonstrated implementations or client licenses.
As of January 19, 2026, Fractal Analytics has filed a total of 66 patents, with 28 already granted and 38 still under review. This includes 18 patents filed under Asper.AI, of which six have been granted. Additionally, Qure.ai has filed 61 patents, with 40 granted so far. Beyond these, Fractal.ai has built a substantial pool of intellectual property that is currently integrated into its service delivery. While this IP is not offered as standalone licensable products at present, the company may consider doing so in the future.
Competitive Positioning
Fractal Analytics operates in a broad analytics and AI services ecosystem where competitors can be grouped into three main categories, product-focused firms like C3.ai and Palantir that build proprietary platforms, diversified IT service providers such as Accenture, Coforge, Globant, Happiest Minds, and Persistent Systems that embed analytics within wider digital services, and pure-play data and AI specialists like Artefact, LatentView, Quantiphi, Quantium, Tiger Analytics, and Tredence.
Fractal Analytics relies on far more proprietary technology than its larger diversified IT competitors. While companies like Accenture and Globant have no generative AI foundation models, Fractal has developed four of its own. This is backed by an R&D investment of 5.1 percent of revenue, nearly five times higher than Accenture’s 1.1 percent. The company’s patent density of 20 patents per 1,000 employees also far exceeds most service-focused peers, putting it closer to product-driven firms like C3.ai in terms of innovation.
Financially, Fractal sits in a strong position between high-volume service providers and high-margin software companies. Its gross margin of 45.9 percent outperforms diversified IT firms such as Accenture (31.9 percent) and Globant (35.7 percent). This strength translates into excellent client satisfaction, with a Net Promoter Score of 77, much higher than LatentView (41), showing that clients are far more likely to recommend Fractal’s services.
The company also achieves a Net Revenue Retention of over 121 percent, meaning existing clients naturally increase their spending by 21 percent each year without acquiring new clients. This demonstrates that Fractal’s model focuses on high-value AI software rather than low-cost labor, generating consistent, organic growth from its current client base.
Financials
Between FY23 and FY25, Fractal Analytics reported a compound annual growth of 18 per cent in revenue and 6.5 per cent in net income (profit after tax), while its debt grew modestly at 4.2 per cent per year. Although EBIT (earnings before interest and tax) remained negative in the earlier years, it turned positive in FY25, reflecting the company’s improving profitability.
Fractal’s revenue growth of 18 per cent over the same period outpaced the global third-party DAAI market, which grew at 11 per cent, indicating that the company is gaining market share. A significant portion of its revenue comes from the United States, with the US contributing 66 per cent in FY23, 62 per cent in FY24, and 65.2 per cent in FY25. This strong reliance on international markets continued in the six months ended September 2025, with 65 per cent of revenue coming from the US, highlighting both the company’s global client base and the operational risks associated with overseas dependence.
Fractal plans to deploy the proceeds from its fresh issue of Rs 1,024 crore across several key initiatives. Approximately Rs 265 crore will be invested in its subsidiary Fractal USA to repay debt, Rs 57 crore will be used for laptops, and nearly Rs 121 crore will go toward establishing new office premises in India. Additionally, Rs 355 crore is earmarked for research and development as well as sales and marketing initiatives under Fractal Alpha, supporting the company’s continued growth and innovation.
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