As India’s first AI company to IPO, Fractal Analytics didn’t have an impressive first day on the public markets as enthusiasm for the technology clashed with jittery investors reeling from a big selloff in Indian software stocks.
Fractal traded at ₹876 per share on Monday, below its issue price of ₹900, and then fell further in afternoon trade. The stock closed at ₹873.70, down 7% from its issue price, giving the company a market capitalization of about ₹148.1 billion (about $1.6 billion).
This price marks a step below Fractal’s recent highs in the private market. In July 2025, the company raised about $170 million in a secondary saleat a valuation of $2.4 billion. It first crossed the $1 billion mark in January 2022 after raising $360 million from TPG, becoming India’s first AI unicorn.
Fractal’s IPO comes as India seeks to position itself as a key market and growth hub for artificial intelligence in a bid to attract investment amid growing attention from some of the world’s most prominent AI companies. Companies like OpenAI and Anthropic are engaging more with the country’s government, businesses and developer ecosystem as they try to tap into the country’s scale, talent base and growing appetite for AI tools and technology.
That push is on display this week in New Delhi, where India is hosting the AI Impact Summit, bringing together global technology leaders, policymakers and executives.
Fractal’s lackluster debut followed a sharp recalibration of its IPO. In early February, the company decided to price the offering conservatively thereafter her bankers advised itreducing the size of the IPO more than 40% to ₹28.34 billion (approx. US$312.5 million), from an initial figure of ₹49 billion (US$540.3 million).
Founded in 2000, Fractal sells artificial intelligence and data analytics software to large enterprises in financial services, retail and healthcare and generates most of its revenue from overseas markets, including the US.
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Fractal advertises a steadily growing business in it IPO filingwith income from operations uprising 26% to ₹27.65 billion (about $304.8 million) in the year ended March 2025 compared to a year earlier. It also posted a net profit of ₹2.21 billion ($24.3 million) from a loss of ₹547 million ($6 million) in the previous year.
The company plans to use the IPO proceeds to repay loans to its US subsidiary, invest in R&D, sales and marketing under its Fractal Alpha unit, expand its office infrastructure in India and pursue potential acquisitions.
