Is Fractal Analytics India’s first AI company IPO?

Yes. Fractal Analytics is considered India’s first pure-play Artificial Intelligence focused IPO where AI, machine learning and analytics form the core revenue stream, unlike traditional IT services companies.

Which IPO is better – Fractal Analytics or Aye Finance?

Both IPOs belong to different sectors. Fractal Analytics is a global AI technology play, while Aye Finance is an MSME lending NBFC. The choice depends on investor risk appetite, preference for tech growth versus financial services exposure, and valuation comfort.

What are the major risks in Fractal Analytics IPO?

Key risks include client concentration among top global accounts, dependence on US technology spending, competition from global AI firms, and the need for continuous investment in talent and innovation.

What are the risks in Aye Finance IPO?

Aye Finance faces credit risk from MSME borrowers, sensitivity to economic slowdown, regulatory changes for NBFCs, and relatively higher operating costs compared to banks.

Should retail investors apply in these IPOs?

Retail investors can apply after evaluating the RHP, valuation, and their own risk profile. Investment decisions should not be based only on grey market premium or listing gains but on long-term business fundamentals.

Information

Fractal Analytics vs Aye Finance IPO India : First AI Company IPO Explained | Watch Full Video

Nidhi Thakur

February 10, 2026

Watch Fractal Analytics vs Aye Finance IPO Video

India’s primary market is witnessing a landmark moment. Fractal Analytics IPO is being called India’s first pure-play Artificial Intelligence company IPO, while Aye Finance IPO represents the fast-growing MSME credit ecosystem. Both belong to completely different industries, yet they reflect where India’s economy is heading – technology-led intelligence and Bharat-focused financial inclusion.

🎥 We have also explained this topic in a detailed video with financial numbers, GMP trends and application strategy – click to watch the full video.

Summary

Fractal Analytics brings a global AI & analytics business to Indian markets
Aye Finance focuses on small business lending using data-driven underwriting
Fractal is a tech growth story; Aye Finance is a financial services play
Risk factors differ – client concentration vs credit quality
Long-term potential matters more than listing-day gains

What Exactly Does Fractal Analytics Do?

Fractal Analytics works with Fortune 500 companies to help them take decisions using AI models, machine learning, and advanced analytics. Its revenue comes from enterprise consulting, proprietary platforms and long-term digital transformation contracts.

Why Investors Are Excited

Exposure to the global AI boom from India
High-margin intellectual property-led services
Multi-year sticky relationships with large clients
Strong presence in the US and Europe

Key Things to Watch

Dependence on top clients for revenue
Competition from global AI and IT majors
Need for continuous investment in talent and R&D

If listed at reasonable valuations, Fractal could become a benchmark for how Indian markets value deep-tech companies, unlike traditional IT services firms.

Understanding Aye Finance IPO

Aye Finance operates in the NBFC segment, providing loans to micro and small entrepreneurs such as shopkeepers, small manufacturers and service providers. The company uses cash-flow based assessment instead of pure collateral to serve underserved borrowers.

Positives

Huge untapped MSME credit market
Technology-driven underwriting
Diversified geographic presence
Alignment with India’s financial inclusion theme

Risks

Asset quality during economic slowdown
Regulatory changes for NBFCs
Higher cost of operations than banks

Fractal vs Aye Finance – Apples and Oranges

These IPOs should not be compared only on subscription numbers or grey market premium.

Fractal Analytics = Global AI + enterprise tech play
Aye Finance = Domestic lending + Bharat growth play
One depends on tech spending; the other on credit cycles
Risk-reward profile is completely different

Indian markets are maturing where investors can now choose between new-age AI innovation and traditional financial growth within the same IPO season.

What This Means for Indian Markets

Fractal’s entry could open doors for more AI, SaaS and product companies to list in India. SEBI’s evolving framework for new-age businesses, better disclosures and governance standards are encouraging such companies to choose Indian exchanges over foreign listings.

Aye Finance highlights the continuing opportunity in MSME formalisation, digital payments adoption and data-led lending – segments strongly supported by RBI and government initiatives.

How Should Retail Investors Decide?

Don’t invest only because it is “India’s first AI IPO”
Read the RHP for profitability and cash flows
Avoid overexposure based on GMP hype
Match the IPO with your risk profile
Think long term, not just listing gains

At Swastika Investmart, our SEBI-registered research team evaluates IPOs on fundamentals, governance and valuation so investors can take informed decisions backed by credible insights.

🎥 Watch the full video analysis for financial comparison, strengths, risks and whether you should apply.

Frequently Asked Questions

Is Fractal Analytics really India’s first AI IPO?
Yes, it is the first major public issue where AI and analytics are the core revenue drivers rather than support services.

Which IPO is better – Fractal or Aye Finance?
There is no direct answer. Fractal suits tech-growth investors, while Aye Finance fits those who prefer financial sector exposure.

Are these IPOs risky?
All IPOs carry risk. Fractal faces client and valuation risk; Aye Finance faces credit and regulatory risk.

Can beginners apply?
Yes, but allocation should be based on financial goals and risk appetite, not social media trends.

What should I track after listing?
For Fractal – client addition and margins.
For Aye Finance – asset quality and collection efficiency.

Final Thoughts

The Fractal Analytics vs Aye Finance IPO debate is not about choosing one winner. It is about understanding two powerful themes shaping India – Artificial Intelligence and MSME growth. Investors should look beyond excitement and focus on business quality, valuation and long-term potential.

Begin your investment journey with research-backed guidance and a trusted SEBI-registered broker.

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