Kolkata-based IT services firm Fusion CX intends to use proceeds from its upcoming ₹1,000 crore IPO to pay off nearly 90% of its ₹166.8 crore debt. The company also aims to expand its AI data infrastructure business, targeting 25% revenue contribution from the segment within two years.
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Fusion CX, an IT services company headquartered in Kolkata, has updated its regulatory filing to outline a strategy for reducing its financial liabilities. Following a proposed public issue of ₹1,000 crore, the company plans to clear approximately 90% of its current outstanding debt, which stood at ₹166.8 crore as of FY26.
Strategic Focus on AI and Debt Clearance
The move to reduce debt is part of a broader plan to improve the company's financial health ahead of its public market debut. Fusion CX received approval from the Securities and Exchange Board of India (SEBI) for this IPO last year. By lowering its debt, the company aims to reduce interest costs and improve its balance sheet strength, which is a common strategy for companies seeking to stabilize their finances before or after listing.
Beyond debt reduction, Fusion CX is pivoting its business toward artificial intelligence. The firm is building an AI data infrastructure segment, which management expects will become a significant revenue driver. According to CEO and Managing Director Pankaj Dhanuka, this division is projected to generate ₹160 crore in revenue for the current fiscal year, with an ambition to reach over ₹600 crore by FY27. If these targets are met, the company expects AI services to account for one-quarter of its total revenue within the next 18 to 24 months.
Expansion and Client Acquisition
The company is currently working with 22 active clients in the AI space and has an additional nine clients in the proof-of-concept phase, which refers to the preliminary stage where a company tests the feasibility of a project before a full-scale contract. Fusion CX expects these projects to convert into full-scale engagements within three months.
In addition to organic growth through its AI division, Fusion CX is looking at inorganic growth through acquisitions. The company is in the process of finalizing two deals this year, aiming to expand its customer reach and establish a presence in two new international markets. While acquisitions can help scale a business quickly, investors often watch whether the company can successfully integrate these new businesses without incurring unexpected costs or management distractions.
As the company moves toward its public offering, stakeholders will likely track the actual timeline for the IPO launch, the successful conversion of its AI pipeline clients, and the impact of the planned debt reduction on future profit margins. The IT services sector remains competitive, and the company's ability to execute its AI-focused strategy while managing the integration of new acquisitions will be a key area for analysis.