{"id":142747,"date":"2025-11-19T09:42:18","date_gmt":"2025-11-19T09:42:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/142747\/"},"modified":"2025-11-19T09:42:18","modified_gmt":"2025-11-19T09:42:18","slug":"indias-fractal-analytics-bets-heavily-on-rd-in-ai-race-ahead-of-ipo","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/142747\/","title":{"rendered":"India&#8217;s Fractal Analytics bets heavily on R&#038;D in AI race ahead of IPO"},"content":{"rendered":"\n<p class=\"yf-1090901\">(Refiles to add editing credit)<\/p>\n<p class=\"yf-1090901\">By Komal Salecha<\/p>\n<p class=\"yf-1090901\">(Reuters) -Indian enterprise <a href=\"https:\/\/tech.yahoo.com\/ai\/\" data-ylk=\"slk:artificial intelligence;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">artificial intelligence<\/a> firm Fractal Analytics plans to maintain high research and development spending ahead of its market debut for which a date \u200bhas not yet been set, a top executive said.<\/p>\n<p class=\"yf-1090901\">Fractal, which specialises in AI-driven decision-making for \u200clarge businesses, will continue to invest &#8216;significantly&#8217;, and possibly increase its research outlay to stay competitive, chief executive officer Srikanth Velamakanni told \u200cReuters.<\/p>\n<p class=\"yf-1090901\">In 2025, Fractal spent 1.44 billion rupees ($16.60 million) on R&amp;D, with an average 6% spend on R&amp;D over the past three years, the company&#8217;s red herring prospectus showed. Fractal is waiting to receive approval from India&#8217;s securities regulator to move forward with its initial public offering.<\/p>\n<p class=\"yf-1090901\">&#8220;No company can take its AI credibility for \u2060granted,&#8221; said Velamakanni.<\/p>\n<p class=\"yf-1090901\">&#8220;If you&#8217;\u200cre not investing seriously in AI R&amp;D and building at the cutting edge, what is your right to survive or even exist?&#8221;<\/p>\n<p class=\"yf-1090901\">The company&#8217;s listing push comes as global investment \u200dpours into building new infrastructure to meet a projected boom in demand for AI services.<\/p>\n<p class=\"yf-1090901\">India is a critical growth market where nearly a billion users access the internet. Google recently committed to a $15 billion investment over five years to create an AI data center in the South \u200bIndian state of Andhra Pradesh. <a href=\"https:\/\/www.yahoo.com\/organizations\/microsoft\/\" data-ylk=\"slk:Microsoft;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Microsoft<\/a> and Amazon have also poured billions into building data centers in India.<\/p>\n<p class=\"yf-1090901\">Fractal, which \u200coperates from New York and Mumbai, earns more than 65% of its revenue from U.S. clients including the likes of Microsoft, <a href=\"https:\/\/www.yahoo.com\/organizations\/apple\/\" data-ylk=\"slk:Apple;elm:context_link;itc:0;sec:content-canvas\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Apple<\/a>, Nvidia, Alphabet, Amazon, Meta and Tesla.<\/p>\n<p class=\"yf-1090901\">Velamakanni, however, does not view reliance on big technology firms as a risk, adding that the company is expanding global revenues as fast as possible across the world.<\/p>\n<p class=\"yf-1090901\">Nearly 10% of Fractal\u2019s revenue comes from a single company that&#8217;s part of the Magnificent 7.<\/p>\n<p class=\"yf-1090901\">&#8220;It&#8217;s \u2060been a nine-ten year relationship and we see opportunities to expand\u201d\u200b, Velamakanni said without naming the client.<\/p>\n<p class=\"yf-1090901\">Fractal Analytics has raised over \u200b$800 million so far in funding from investors like Quinag Bidco Ltd, Apax Partners and TPG Fett Holdings, the CEO said. With its listing, Fractal is set to become India&#8217;s first \u200dlisted AI-led company and Velamakanni \u2060hopes its debut will open the door for other domestic AI firms to tap capital more easily.<\/p>\n<p class=\"yf-1090901\">Indian AI firms such as Sarvam and Krutrim have seen fundraising from marquee investors such as Peak XV Partners and Matrix Partners India.<\/p>\n","protected":false},"excerpt":{"rendered":"(Refiles to add editing credit) By Komal Salecha (Reuters) -Indian enterprise artificial intelligence firm Fractal Analytics plans to&hellip;\n","protected":false},"author":2,"featured_media":142748,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,96531,2344,96534,111,139,69,96533,6835,96532,145],"class_list":{"0":"post-142747","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-fractal-analytics","12":"tag-india","13":"tag-market-debut","14":"tag-new-zealand","15":"tag-newzealand","16":"tag-nz","17":"tag-red-herring-prospectus","18":"tag-rupee","19":"tag-srikanth-velamakanni","20":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/142747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=142747"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/142747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/142748"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=142747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=142747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=142747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}