Fractal Analytics, India’s first IPO company, had a not-so-strong first day on the public market as enthusiasm for technology collided with nervous investors recovering from a steep slide in India’s software stocks.
Fractal was listed on Monday at Rs 876 per share, below the issue price of Rs 900, but fell further in afternoon trade. The stock price fell 7% from the issue price to close at 873.70 rupees, giving the company a market capitalization of approximately 148.1 billion rupees (approximately $1.6 billion).
This price represents a step down from Fractal’s recent private market highs. In July 2025, the company raised approximately $170 million in a secondary sale, valued at $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 leading market and development hub for AI to attract investment amid increasing attention from the world’s leading AI companies. Companies like OpenAI and Anthropic are increasingly collaborating with the country’s government, business, and developer ecosystems to take advantage of the country’s size, talent base, and growing demand for AI tools and technology.
That push will be evident this week when India hosts the AI Impact Summit in New Delhi, bringing together global technology leaders, policymakers and executives.
Fractal’s modest debut followed a significant IPO rejig. In early February, the company decided to price the public offering conservatively on the advice of bankers, reducing the size of the IPO by more than 40% to 28.34 billion rupees (approximately $312.5 million) from the original 49 billion rupees ($540.3 million).
Founded in 2000, Fractal sells AI and data analytics software to large enterprises across financial services, retail and healthcare, and derives the majority of its revenue from overseas markets, including the United States. The company pivoted to AI in 2022 after operating as a traditional data analytics company for more than 20 years.
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In its IPO filing, Fractal touted its business as steadily growing, with operating revenue of 27.65 billion rupees (about $304.8 million) for the year ending March 2025, up 26% from a year earlier. Net profit also turned to a profit of 2.21 billion rupees ($24.3 million), compared to a loss of 547 million rupees ($6 million) a year earlier.
The company plans to use the proceeds from the IPO to repay the debt of its U.S. subsidiary, invest in research and development, sales and marketing for its Fractal Alpha division, expand its office infrastructure in India, and pursue potential acquisitions.
