Fusion CX Limited is going live for an IPO. It runs customer service for clients in many languages from centres across the world, and most of its staff sit in India and the Philippines, yet most of its revenue comes from US customers.
IPO Summary
| HD Fire Protect IPO Details | |
|---|---|
| IPO Date | 13th to 15th Oct, 2026 |
| Sale Type | 100% OFS |
| Tentative Listing Date | 21st Oct, 2026 |
| Price Band | ₹258 to ₹271 |
| Post Issue M. Cap at ₹271 | ₹4,749 Cr |
| Total Issue Size | ₹712 Cr |
Introduction
Companies traditionally run their own customer services. In fact, about two-thirds of global customer service work themselves. But about one-third of the world’s customer service work is done by outside, outsourced firms.
Outsourced CX (customer experience) is projected to grow 2.58% a year from 2025 to 2027. Meanwhile, In-house CX is projected to shrink 0.23% a year.
Buyers outsource to cut costs, to start faster, and to gain tools such as generative AI and multilingual support.
North America is the largest buyer of outsourced CX, at about 42% of global outsourced demand by 2027.
Fusion CX Limited (Fusion CX) is a Kolkata-based CX provider that serves clients mainly in North America. They’re coming to market with an IPO worth ₹702 Cr, consisting of a Fresh Issue of ₹500 Cr and an Offer for Sale of ₹202 Cr, from 14th to 16th Oct, 2026.
The Business Model
Pankaj Dhanuka and Kishore Saraogi founded the company in Kolkata in 2004 as Xplore-Tech Services Private Limited. It took the name Fusion CX in 2024.
Fusion CX takes over a client’s customer contact work. Their staff answer calls, emails, chats and social media messages for the client’s customers. They also sell to those customers, take orders, collect payments and fix technical faults, in 28 languages.
The company also sells AI data services, such as image labelling and remote robot control.
On June 30, 2026, it had 208 customers, including 22 Fortune 1000 companies, and 40 delivery centres in 13 countries. Key clients include Traya, Ajio, Meesho, DMEC Capital Services, Park West, etc.
Fusion has 13,735 CX employees, and 3,829 field staff in India who read meters for electricity boards and do field work for banks.
A client pays in one of three ways:
- Fixed fee: a set price per employee per month for an agreed scope.
- Outcome based: pay tied to a result, such as a sale closed or a debt collected.
- Per transaction: a fee for each call, chat or email handled.
Fusion CX serves mainly the telecom sector and other utilities, high-tech growth and travel (HTT), banking, financial services and insurance (BFSI), retail and healthcare.
Customers in the US gave ~74% of FY26 revenue and customers in India gave ~11%.
Fusion CX has some onshore centres in the US and Canada that handle work using local staff. But most employees are located in India and the Philippines, where Fusion can provide cost-effective support round the clock.
Part of Fusion’s growth has come from buying CX firms: Ameridial, a US based firm in 2018, Boomsourcing (also US based) in 2022, Ready Call Center in Belize in 2024, VA Platinum Offshoring (Australia) in 2026; among others.
Fusion’s subsidiary Omind builds MindVoice, a voice and chat bot, Arya, a live assistant for staff on calls, and Mind WorkPlace for staff hiring, training and tracking.
R&D spend was 1.27% of revenue in FY26. The top 5 customers have stayed with Fusion CX for ~13 years on average.
Unit Economics (₹ Lakh per CX Employee)
- Revenue per employee fell about 9% in FY25 to ₹11 lakh, then rose about 29% in FY26 to ₹14 lakh. Note that employee count itself grew 47% in FY25 and 6% in FY26.
- Adj. EBITDA per CX employee rose from ₹1.43 lakh in FY24 to ₹2.65 lakh in FY26.
- In FY26, employee expense rose to ₹9 lakh per employee. Other expenses per CX employee stayed roughly the same.
Operating Metrics
- CX employees rose from 8,539 in FY24 to 13,357 in FY26, up 56%. Voluntary attrition among CX employees was 26.5% in FY26 and 31.2% for the 12 months to June 2026. Revenue per CX employee for Q1 FY27 is annualised.
- Active clients rose from 190 in FY24 to 228 in FY26, and to 239 in Q1 FY27. Clients paying more than US$3 mn a year rose from 7 in FY24 to 12 in FY26, and stood at 11 in Q1 FY27.
- Telecom and other utilities gave 47% of FY26 revenue, up from 31% in FY24. The other four verticals each gave between 12% and 14%. HTT’s share fell from 23% in FY24 to 14% in FY26, though its actual revenue stayed roughly the same.
- US customers made up 73.5% of revenue, up from 50.8% in FY24. India’s share fell from 23.8% to 11.3%. Canada made up % in FY26 and Latin America, all of it from El Salvador made up %.
The Financial Stuff
- Revenue went from ₹991 Cr in FY24 to ₹1,329 Cr in FY25 and ₹1,818 Cr in FY26. That is ₹338 Cr added in FY25 and ₹489 Cr in FY26.
- Adj. EBITDA Margin was 12.3% in FY24, 15.8% in FY25 and 19.5% in FY26. PAT margin was 3.7%, 5.6% and 9.3%. Adj. EBITDA went from ₹122 Cr to ₹354 Cr, and PAT from ₹36 Cr to ₹170 Cr.
- Depreciation was ₹49 Cr, ₹81 Cr and ₹95 Cr, and finance costs were ₹19 Cr, ₹39 Cr and ₹46 Cr. Tax was ₹0.4 Cr, ₹3 Cr and ₹20 Cr, which is 1.2%, 4.4% and 10.3% of PBT.
Fusion CX’s Peers (FY26)
- Fusion CX has the second smallest revenue of the seven, at ₹1,818 Cr. Alldigi is smaller at ₹599 Cr and Firstsource is the largest at ₹9,616 Cr.
- EBITDA Margin of 18% is above Firstsource’s 16% and Hinduja Global’s 15%, and below the other four,
- Fusion CX’s PAT Margin of 9% sits against a peer range of ~0% to 23%.
- RoNW of 31% is second only to eClerx at 53%.
At an upper band of ₹289 and FY26 basic EPS of ₹13.47, Fusion CX will trade at a P/E of 21.5x. Peers range from 14.12x at Alldigi to 51.07x at Hinduja Global, with an average of 26.65x.
Key Risks
- Customer concentration: The largest customer gave 30% of FY26 revenue, against 18% in FY25, the top 10 gave 52%. Customers may seek lower prices or move work in-house, and that loss of a top customer could hurt the business.
- Short contracts: Contracts run from three to 60 months, and most run under 24 months. Many can be ended at short notice with no penalty.
- Sector reliance: Telecom and other utilities gave 47% of FY26 revenue. A downturn in these sectors, or loss of a customer in them, would weigh on revenue.
- North America concentration: Customers in North America gave 82% of FY26 revenue, and 85% came in the form of USD payments. The company has no hedging. It made a net foreign exchange gain of ₹18 Cr in FY26, after net losses of ~₹1.4 Cr in FY25 and ~₹2.5 Cr in FY24.
- Legal and governance: Proceedings against the company involve ₹84 Cr and those against its subsidiaries involve ₹97 Cr. The company has delayed statutory payments in the past. The DIN of CMD and CEO Pankaj Dhanuka was suspended in 2017 over another company’s missed filings.
