Fusion CX Limited, a globally operating customer experience (CX) and business process outsourcing (BPO) services company headquartered in Kolkata, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. Incorporated in 2004, the company delivers multichannel CX services across voice, email, chat, and social media channels. As of June 30, 2026, Fusion CX operates 40 delivery centres across 13 countries, supports 28 languages, and serves 208 customers, including 22 Fortune 1000 companies.

About the Company

Fusion CX blends proprietary AI tools with domain expertise to provide omnichannel engagement at scale. Its technology stack includes MindVoice (AI-driven conversational voice bot), Arya (AI support coach), and MindSpeech (speech analytics), developed through its subsidiary Omind Technologies. The company serves key verticals such as Telecom & Utilities, BFSI, Healthcare, Hospitality, Travel & Tourism (HTT), and Retail.

The business model is export-oriented, with approximately 88.71% of revenue derived from international customers in FY2026, primarily from North America. Fusion CX has pursued growth through both organic expansion and strategic acquisitions, including S4 Communications LLC, STI (Skycom BPO), and Ready Call Center, which expanded its US delivery footprint and Latin American presence. The company is led by co-founders Pankaj Dhanuka and Kishore Saraogi, who bring 22 and 27 years of domain experience respectively.

Financial Performance

Fusion CX has demonstrated strong revenue growth and significant profitability improvement over the last three fiscal years. Revenue from operations grew from ₹991.32 crore in FY2024 to ₹1,818.14 crore in FY2026, representing a two-year CAGR of approximately 35.40%. Profit after tax (PAT) rose sharply from ₹36.26 crore in FY2024 to ₹169.84 crore in FY2026, reflecting improved operating leverage and margin expansion.

Operating cash flow also saw substantial improvement, growing from ₹39.26 crore in FY2024 to ₹264.22 crore in FY2026. Return on Equity (ROE) increased from 13.37% in FY2024 to 30.30% in FY2026.

Why the Company Is Raising Funds

The DRHP outlines specific uses for the net proceeds from the fresh issue:

1. Debt Repayment: ₹275.69 crore will be used to repay or prepay outstanding borrowings of the Company and certain subsidiaries, including Omind Technologies Private Limited, Fusion BPO Services Limited (Canada), Ameridial Inc., O'Currance Inc., and S4 Communications LLC. This aims to reduce indebtedness and debt servicing costs.
2. AI Technology Upgrades: ₹61.15 crore is allocated for investment in step-down subsidiaries Omind Technologies Inc. and Omind Technologies Private Limited. These funds will upgrade generative AI-based CX tools, specifically Arya and MindVoice, to enhance enterprise capabilities and drive revenue growth.
3. Inorganic Growth: A portion of the proceeds will fund unidentified acquisitions and strategic initiatives to expand capabilities, geographic presence, and vertical-specific service offerings.
4. General Corporate Purposes: Balance net proceeds will be used for strategic initiatives, marketing, support functions, and general corporate exigencies.

Business Strengths

• Global Delivery Network: 40 delivery centres across 13 countries provide 24x7 multichannel support in 28 languages, enabling cost optimization and scalability.
• AI-Driven Solutions: Continuous R&D investment (₹230.99 million in FY2026) supports proprietary tools like MindVoice and Arya, differentiating the company in a technology-driven market.
• Strategic Acquisitions: Proven track record of integrating businesses like S4 Communications and STI to expand footprint and client relationships.
• Long-Standing Customer Relationships: Average relationship with top 5 customers stands at 13.02 years, indicating high client retention and trust.
• Experienced Leadership: Co-founders with over two decades of experience in CX and BPO services lead a skilled management team.

Key Risks

• Customer Concentration: Top 10 customers contributed 52.17% of revenue from operations in FY2026, up from 41.04% in FY2024. Loss of key clients could materially impact financial performance.
• Geographic Concentration: North America accounted for 81.70% of revenue in FY2026. Geopolitical tensions, trade restrictions, or anti-outsourcing legislation in this region pose significant risks.
• Foreign Exchange Risk: The company transacts primarily in USD but reports in INR and currently has no hedging agreements in place. Recorded net foreign exchange losses of ₹14.41 million in FY2025.
• Employee Attrition: CX employee attrition rates have ranged between 26.50% and 32.15% over the last three years. High attrition can impact service quality and increase recruitment costs.
• Goodwill Impairment: Goodwill and intangible assets represented 33.95% of total assets as of June 30, 2026. Future impairments could result in reported losses.

Important IPO Dates

• IPO Opening Date: 14-Oct-2026
• IPO Closing Date: 16-Oct-2026
• Allotment Date: 19-Oct-2026
• Listing Date: 20-Oct-2026

Bottom Line

Fusion CX presents a case of rapid scaling in the global CX/BPO sector, evidenced by a ~35% revenue CAGR and a sharp rise in PAT margins to 9.17% by FY2026. The IPO proceeds are strategically directed toward deleveraging the balance sheet and enhancing AI capabilities. However, investors must weigh these positives against material risks related to high customer and geographic concentration, lack of forex hedging, and elevated employee attrition rates.