As India’s first artificial intelligence company to IPO, Fractal Analytics did not have a stellar first day on the public markets as excitement about the technology clashed with jittery investors recovering from a major selloff in Indian software stocks.
Fractal was quoted at ₹876 per share on Monday, below the issue price of ₹900, before falling 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 (around US$1.6 billion).
That price tag marks a step down from Fractal’s recent private market highs. As of July 2025, the company has raised about $170 million in secondary sales, at a $2.4 billion valuation. It crossed the $1 billion mark for the first time 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 development center for AI in a bid to attract investment amid growing attention from some of the world’s top AI companies. Firms like OpenAI and Anthropic are getting more involved with local government, businesses and the developer ecosystem as they look to take advantage of the country’s scale, talent base and growing interest in AI tools and technologies.
That push is on display this week in New Delhi, where India is hosting the AI Impact Summit, which will bring together global technology leaders, policymakers and executives.
Fractal’s subdued debut followed a sharp recalibration of its IPO. In early February, the company decided to price the offering conservatively after being advised by its bankers, reducing the IPO size by more than 40% to ₹28.34 billion (about US$312.5 million), from an original amount of ₹49 billion (US$540.3 million).
Founded in 2000, Fractal sells AI and data analytics software to large enterprises across financial services, retail and healthcare and generates most of its revenue from overseas markets, including the US. The company pivoted to AI in 2022 after operating as a traditional data analytics firm for over 20 years.
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In its IPO filing, Fractal touted a steadily growing business, with revenue from operations up 26% to ₹27.65 billion (around US$304.8 million) in the year ending March 2025 compared to the previous year. It also swung to 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 proceeds from the IPO to repay loans at its US subsidiary, invest in research and development, sales and marketing within its Fractal Alpha unit, expand office infrastructure in India and pursue potential acquisitions.