Fusion CX to repay over 90% debt after IPO, targets more acquisitions and AI expansion

AI-driven customer experience and BPO player Fusion CX plans to use proceeds from its initial public offering (IPO) to repay more than 90% of its debt, expand its AI capabilities and pursue acquisitions as it looks to sustain growth, according to Pankaj Dhanuka, Promoter, CMD & CEO, and Kishore Saraogi, Promoter, Managing Director & COO, of Fusion CX Limited.

The company, whose IPO opened for subscription today (October 14), expects debt reduction to improve profitability while continued investments in AI products and acquisitions support future growth. Management also said it expects growth to be evenly split between acquisitions and organic expansion going forward.

Fusion CX describes itself as an AI-first digital customer experience company serving clients across voice, email, chat, social media and back-office operations, with nearly 80% of its customers based in the US and Canada. "We provide AI-first digital customer experience," Dhanuka said, adding that the company has developed six proprietary AI products that are integrated into its customer offerings.

On the use of IPO proceeds, Dhanuka said, "We'll be able to pay off more than 90% of the debt." He added that around ₹260-270 crore will be used for debt repayment, ₹65 crore will be invested in AI products and solutions, while the remaining funds will support general corporate purposes and acquisitions. Fusion CX has already completed one acquisition this financial year and expects to close two more before the year ends.

Responding to concerns about AI replacing human agents, Saraogi said the company sees AI as an enabler rather than a replacement. "The adoption of AI is accelerating for sure," he said, adding that enterprises continue to prefer a human plus tech model. According to him, AI-based voice agents are currently used more for call deflection than fully replacing human interaction.

The management said about 60% of revenue growth between 2023-24 (FY24) and 2025-26 (FY26) came through acquisitions, while 40% was organic. Going forward, the company expects a 50:50 mix between acquisition-led and organic growth.

On customer concentration, Saraogi said Fusion CX's largest client—a Fortune 10 US telecom company—has worked with the company for nearly two decades. While the client currently contributes around 30% of revenue, he expects that share to decline gradually as the company's overall customer base expands. "We continue to see a huge expansion and a big scope of expanding further into the business," he said.

The company also acknowledged customer churn, attributing it mainly to changes in vendor relationship managers or shifts in clients' business models. Management said continued execution and AI-led differentiation remain key to improving customer retention.

For the full interview, watch the accompanying video



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