As the first Indian AI company to go public, Fractal analysis didn’t have a stellar first day on the public markets as enthusiasm for technology collided with nervousness among investors recovering from a selloff in Indian software stocks.
Fractal was listed at ₹876 per share on Monday, below its issue price of ₹900, then fell further in afternoon trading. The stock closed at ₹873.70, down 7% from its issue price, giving the company a market capitalization of around ₹148.1 billion (around $1.6 billion).
This price marks a drop from Fractal’s recent highs in the private market. In July 2025, the company raised approximately $170 million in a secondary salefor a valuation of $2.4 billion. It crossed the $1 billion mark for the first time in January 2022 after raising $360 million from TPG, to become India’s first AI unicorn.
Fractal’s IPO comes as India seeks to position itself as a key market and development hub for AI in a bid to attract investment amid growing attention from some of the world’s largest AI companies. Companies such as OpenAI And Anthropic have become more engaged with the country’s government, businesses and developer ecosystem as they seek to leverage the country’s size, talent base and growing appetite for AI tools and technologies.
This initiative is visible this week in New Delhi, where India is hosting the AI Impact Summitbringing together global technology leaders, policymakers and executives.
Fractal’s quiet debut followed a sharp recalibration of its IPO. In early February, the company decided to price the offering conservatively after his bankers advised him toreducing the size of the IPO by more than 40% to ₹28.34 billion (around $312.5 million), up from the initial amount of ₹49 billion ($540.3 million).
Founded in 2000, Fractal sells AI and data analytics software to large companies in financial services, retail and healthcare, and generates the bulk 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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Fractal touted a steadily growing business in its IPO Filingwith operating income uprising 26% to ₹27.65 billion (around $304.8 million) in the financial year ending March 2025 compared to a year earlier. It also generated a net profit of ₹2.21 billion ($24.3 million) compared to a loss of ₹547 million ($6 million) the previous year.
The company plans to use proceeds from the IPO to repay loans at its U.S. subsidiary, invest in R&D, sales and marketing of its Fractal Alpha unit, expand office infrastructure in India and pursue potential acquisitions.