Decoding Fractal's IPO, India's Defence Tech Boom & More

Analysing Fractal’s INR 4,900 Cr DRHP

Fractal has set the ball rolling to become the first Indian AI-focussed startup to list on the bourses. Earlier this week, the SaaS unicorn filed its IPO papers with SEBI for an INR 4,900 Cr IPO. The enterprise tech startup’s public issue will comprise a fresh issue of shares worth INR 1,279.3 Cr and a secondary share sale component of INR 3,620.7 Cr.

So, what is the 25-year-old venture banking on to hit a $3.5 Bn IPO valuation?

A Mature Business: One of the biggest tailwinds for Fractal is its deep portfolio of products that place it squarely in the AI market, which is experiencing explosive growth. What also works for the company is its long list of Fortune 500 clients and a business spanning multiple continents.

It also boasts the first-mover advantage of being the first Indian AI-focussed startup headed for bourses, which could potentially attract a premium from investors keen to enter this high-growth sector. But the biggest booster of all has been its profitable FY25.

Here is a quick snapshot:

• Fractal turned profitable with a net profit of INR 220.6 Cr against a net loss of INR 54.7 Cr in FY24
• Operating revenues jumped 26% YoY to INR 2,765.4 Cr

Reality Check: The biggest risk facing Fractal is client concentration – top ten customers accounted for half of revenues in FY25. Then, there is the evolving regulatory landscape governing AI and intense competition from IT services giants, which could lead to pricing pressure and impact profitability.

With markets also roiling in volatility, will Fractal’s second stab at a public listing materialise or fizzle like it did in 2021? With the ball in SEBI’s court, here is how Fractal’s IPO stacks up.

From The Editor’s Desk

India’s Defence Tech Boom: According to Inc42’s latest report, the country’s defence tech market is projected to become a $19 Bn opportunity by 2030. This growth will come on the back of AI, autonomous systems, quantum computing and next-generation radar platforms.

Uber Pilots Zero Commissions: The ride-hailing giant has rolled out a zero-commission “pass” to enable cab drivers to buy subscriptions for either 24 or 72 hours. The latter is priced at INR 341. This follows rival Ola shifting to a zero commission model last month.

FirstCry’s Q1 Loss Declines: The omnichannel kids-focussed retailer reported a 12% decline in its net loss to INR 66.5 Cr in Q1 FY26 from INR 75.6 Cr in the year-ago quarter. Meanwhile, operating revenue rose 13% YoY to INR 1,862.6 Cr.

BlueStone IPO Subscribed 2.7X: The omnichannel jewellery brand’s IPO closed on a high note as investors bid for 4.46 Cr shares as against 1.65 Cr shares on offer. The portion for QIBs was subscribed 4.28X, while the retail quota was oversubscribed 1.35X.

Refold AI Nets $6.5 Mn: The enterprise AI startup raised the capital in a seed round co-led by Eniac Ventures and Tidal Ventures. Founded by former founders of JustDoc, the startup’s AI-driven platform helps enterprises automate API integrations.

Decoding Nykaa’s Q1 Show: The listed BPC giant’s profit zoomed nearly 80% YoY while revenue rose 23% YoY in Q1 FY26. Driving this was growing offline presence, onboarding of more international brands and healthy margins from umbrella brands.

Matrimony’s Subdued Q1 Show: The matchmaking platform’s net profit declined 39.5% to INR 8.4 Cr in Q1 FY26 from INR 13.9 Cr in the year-ago quarter. Revenue for the quarter declined 4.8% to INR 115.3 Cr from INR 120.59 Cr in Q1 FY25.

TMRW Eyes $50 Mn: The Aditya Birla Group’s house of brands venture is set to raise INR 437 Cr in its maiden external funding round from software giant ServiceNow’s VC arm. TMRW is a roll-up platform that acquires stakes in digital fashion and lifestyle brands.

Inc42 Startup Spotlight Can Escape Plan Redefine India’s Travel Gear Needs?

There is no dearth of players in India’s burgeoning luggage and travel accessories market. Yet, most products still lack modern aesthetics and practical design. Escape Plan aims to bridge this gap for a new generation of consumers who prioritise both style and function in their travel gear.

A Hybrid Strategy: The D2C brand sells a range of travel products, including luggage, duffels, backpacks, slings, pouches and modular organisers. Banking on its omnichannel go-to-market strategy, the startup already sells its offerings through retail stores in Bengaluru. Complementing this, it also plans to launch its ecommerce site soon.

The Travel Ecosystem Vision: Going forward, Escape Plan plans to list its products on quick commerce platforms and build a comprehensive travel ecosystem. Its vision includes opening 100+ stores across tier I and II cities over the next two years and launching one-hour delivery in select markets.

With this, Escape Plan aims to capture every segment of the Indian traveler’s needs, from daily commutes to long vacations. With a focus on design, retail experience and quick delivery, can Escape Plan disrupt India’s $3.5 Bn travel and luggage market?

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