Fractal Analytics, India’s first IPO AI company, did not have a stellar first day on the public markets as enthusiasm for the technology clashed with nervous investors recovering from a massive sell-off in Indian software stocks.
Fractal fell further in afternoon trading after listing on Monday at ₹876 per share, below its issue price of ₹900. 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 tag is a notch below Fractal’s recent private market highs. In July 2025, the company raised approximately $170 million through a secondary sale, at a valuation of $2.4 billion. After raising $360 million from TPG, it crossed the $1 billion mark for the first time in January 2022, becoming India’s first AI unicorn.
Fractal’s IPO comes as India seeks to position itself as a key market and development hub for AI to attract investments amid growing interest from some of the world’s most prominent AI companies. Companies like OpenAI and Anthropic have become more engaged with the country’s government, enterprise, and developer ecosystem to leverage the country’s size, talent base, and growing appetite for AI tools and technologies.
These efforts are 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 muted debut was followed by a sharp rebalancing of its IPO. In early February, the company, following the advice of its bankers, decided to price its IPO conservatively at 28.34 billion rupees (about $312.5 million), down more than 40% from the original amount of 49 billion rupees ($540.3 million).
Founded in 2000, Fractal sells AI and data analysis software to large companies in finance, distribution, and healthcare, and generates most of its profits in overseas markets such as the United States. Fractal operated as a traditional data analysis company for over 20 years and pivoted to AI in 2022.
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Fractal touted a steadily growing business in its IPO filing, reporting operating revenue of 27.65 billion rupees (about $304.8 million) for the fiscal year ended March 2025, up 26% from the previous year. It also swung to a net profit of 2.21 billion rupees ($24.3 million) from a loss of 547 million rupees ($6 million) the previous year.
The company plans to use the IPO proceeds to repay debt from its U.S. subsidiary, invest in R&D, sales and marketing of its Fractal Alpha division, expand its India office infrastructure and pursue potential acquisitions.
