Investor caution overshadowed a landmark moment for India’s artificial intelligence sector as Fractal Analytics made its stock market debut. As India’s first AI focused company to go public, Fractal entered the markets at ₹876 per share on Monday, below its issue price of ₹900. The stock slipped further during afternoon trade and closed at ₹873.70, down 7% from the issue price. The closing price valued the company at about ₹148.1 billion, or nearly $1.6 billion.
The listing comes at a time when investors are still recovering from a major sell off in Indian software stocks. Earlier in July 2025, Fractal had raised around $170 million through a secondary sale at a valuation of $2.4 billion. The company first achieved unicorn status in January 2022 after raising $360 million from TPG, becoming India’s first AI unicorn and crossing the $1 billion valuation mark.
Fractal’s public debut also aligns with India’s broader push to position itself as a major AI market and development hub. Global AI firms such as OpenAI and Anthropic have been increasing engagement with the Indian government, enterprises and developer community to tap into the country’s scale and talent base. This effort is visible in New Delhi this week, where India is hosting the AI Impact Summit with global technology leaders, policymakers and executives in attendance.
Before listing, Fractal revised its IPO plans. In early February, it cut the issue size by more than 40% to ₹28.34 billion, or about $312.5 million, from the earlier ₹49 billion, or $540.3 million, after bankers advised conservative pricing. Founded in 2000, Fractal provides AI and data analytics software to large enterprises in financial services, retail and healthcare, earning most of its revenue from overseas markets including the U.S. The company shifted its focus to AI in 2022 after over 20 years as a data analytics firm. In the year ended March 2025, revenue rose 26% to ₹27.65 billion, or $304.8 million. It reported a net profit of ₹2.21 billion, or $24.3 million, compared to a loss of ₹547 million, or $6 million, a year earlier. The IPO proceeds will be used to repay borrowings at its U.S. unit, invest in research and development, sales and marketing under Fractal Alpha, expand office infrastructure in India and pursue acquisitions.
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