Fractal Analytics, an artificial intelligence and data analytics global leader based out of Mumbai and New York, recently went public. Sadly, the outcome was lackluster. It was originally founded as a dot-com in 2000. It is the leading provider of AI and data analytics software to large enterprises across industries, including financial services, retail and healthcare. Despite its strong foundation and recent pivot towards AI in 2022, the initial public offering (IPO) did not meet market expectations.
Fractal Analytics stunned the stock market with its IPO price of ₹876 a share. Regrettably, that was still less than its issue price of ₹900. Current performance The stock, which hit a peak of ₹1,180, closed at ₹873.70, a drop of 7% from its IPO price. This stark underperformance is a dramatic reversal from the company’s strong top line growth trajectory leading up to its IPO. Fractal Analytics predicted 50% growth for the fiscal year ending this March 2025. The firm increased its profits by 27% to ₹27.65 billion or about $304.8 million.
In January 2022, the company hit the headlines by becoming India’s first AI unicorn. It reached this remarkable milestone after raising $360 million from TPG. By July 2025, Fractal Analytics had gone on to raise a staggering $170 million in a secondary sale. This funding raised their valuation to a mind-boggling $2.4 billion. A large share of its revenue is dependent on international markets, particularly the U.S. That speaks to the astounding global footprint it has as a company, despite being headquartered in India.
Given today’s market conditions, Fractal Analytics decided to take a cautious path while setting its IPO price. In the face of tepid demand, the company listened to bankers’ advice and reduced the size of its IPO by more than 40%. It now is ₹28.34 billion, or about $312.5 million. This decision overlooks long-standing fears in the field. Investors are increasingly jittery about the sustainability of the current AI-led boom, and the macroeconomic environment remains challenging.
Fractal Analytics’ muted debut on public markets raises questions about investor sentiment towards technology firms amid fluctuating perceptions of AI’s long-term viability. As the company navigates this challenging landscape, it remains to be seen how it will adapt and position itself for future growth.