Fractal Analytics made history as India’s first AI company to go public, but its first day on the stock market was subdued. Enthusiasm for the technology sector met with cautious investors still recovering from a major sell-off in Indian software stocks. The company listed at 876 rupees per share on Monday, below its issue price of 900 rupees, and declined further during the day. It closed at 873.70 rupees, down 7 percent from the issue price, giving Fractal a market capitalization of approximately 148.1 billion rupees, or about 1.6 billion dollars.
This public market valuation represents a step down from the company’s recent private-market peak. In July 2025, Fractal raised about 170 million dollars in a secondary sale at a valuation of 2.4 billion dollars. It had first crossed the 1 billion dollar mark in January 2022 after raising 360 million dollars from TPG, becoming India’s first AI unicorn.
Fractal’s IPO arrives as India is actively positioning itself as a key market and development hub for artificial intelligence. This move aims to attract investment amid growing attention from the world’s most prominent AI companies. Firms like OpenAI and Anthropic have been deepening their engagement with the Indian government, enterprises, and developer community to tap into the country’s scale, talent, and growing demand for AI technology. This push is currently on display in New Delhi, where India is hosting the AI Impact Summit, bringing together global technology leaders, policymakers, and executives.
The company’s quiet debut followed a significant recalibration of its IPO plans. In early February, Fractal decided to price the offering conservatively on the advice of its bankers, cutting the IPO size by more than 40 percent. The final offering raised 28.34 billion rupees, about 312.5 million dollars, down from an original target of 49 billion rupees, or 540.3 million dollars.
Founded in 2000, Fractal sells AI and data analytics software to large enterprises in sectors like financial services, retail, and healthcare. The bulk of its revenue comes from overseas markets, including the United States. After operating as a traditional data analytics firm for over two decades, the company pivoted decisively toward AI in 2022.
In its IPO filing, Fractal highlighted a steadily growing business. Its revenue from operations rose 26 percent to 27.65 billion rupees, approximately 304.8 million dollars, for the year ended March 2025 compared to the prior year. The company also swung to a net profit of 2.21 billion dollars, or 24.3 million dollars, from a loss of 547 million rupees, 6 million dollars, the previous year.
The company plans to use the IPO proceeds to repay borrowings at its U.S. subsidiary, invest in research and development, sales, and marketing under its Fractal Alpha unit, expand office infrastructure in India, and pursue potential acquisitions.