Fusion CX IPO

The customer experience (CX) industry is moving from traditional, cost-focused and reactive BPO models towards proactive, omnichannel and technology-led Customer Experience Management (CXM).  

The global CX market was valued at around ₹30.53 trillion (US$370 billion) in 2024 and is projected to reach approximately ₹30.88 trillion by 2027, reflecting the sector’s resilience despite broader macroeconomic pressures.  

Outsourced CX accounted for around 32% of the market in 2023–24 and is growing faster than in-house operations. Outsourced CX spending is projected to grow at a 1.66% CAGR through 2027, compared with a 0.23% decline in in-house spending. 

Outsourcing can reduce the cost per customer interaction by around 20–30%, enable faster deployment and provide access to advanced technology, multilingual capabilities and geographically diversified delivery centres.  

North America remained the largest source of CX demand, accounting for 41.38% in 2024, followed by EMEA at 34.07% and APAC at 16.75%. Nearshoring in Latin America is also gaining traction as companies seek cost-efficient and geographically closer delivery models.  

Telecommunications and BFSI are among the largest outsourced CX segments, with projected spending of around ₹2.10 trillion and ₹2.09 trillion, respectively, by 2027. High-tech and e-commerce are expected to account for around ₹1.98 trillion, while healthcare and life sciences could reach ₹1.07 trillion.  

Outsourced digital CX is projected to grow at a 10.79% CAGR, reaching around ₹1,917.26 billion by 2027. Generative AI co-pilots, agentic AI, conversational IVRs and other digital tools are increasingly being integrated into CX operations.  

The industry is expanding beyond traditional customer support into AI operations, Trust & Safety, content moderation and Data Annotation & Labelling (DAL), creating additional technology-led service opportunities.  

Fusion CX operates 40 delivery centres across 15 countries across the Americas, EMEA and APAC. Its network supports customer interactions in 25+ languages and provides nearshore English Spanish services for North American clients.  

Through its digital innovation subsidiary Omind, the company has developed AI and generative AI platforms such as Arya, MindVoice and MindSpeech, supporting agent assistance, automated customer interactions and voice harmonisation.  

Fusion CX has completed six strategic acquisitions since 2019, helping it expand its geographical presence, add specialised capabilities and strengthen its delivery network.  

The company's top 5 clients accounted for around 29% of operating revenue in FY2024, while its top 10 clients contributed approximately 41%. The average relationship length was 11.27 years for its top 5 clients and 9.68 years for its top 10 clients.  

Fusion CX serves several complex and regulated sectors, including telecommunications and utilities, healthcare and life sciences, BFSI, retail, high-tech and travel.  

Promoters Pankaj Dhanuka and Kishore Saraogi have a combined 47 years of industry experience, supporting the company's operations and expansion strategy. 

Increasing adoption of outsourced CX services among mid-sized and digitally focused businesses could create opportunities for Fusion CX to expand its client base.  

Rising demand for AI-led customer service creates opportunities to cross-sell Omind's AI platforms to existing clients and expand the company's technology-led service offerings.  

Demand for Data Annotation and Labelling, Trust & Safety and content moderation could allow Fusion CX to diversify beyond traditional CX services.  

The company can increase revenue from existing customers by offering additional specialised services, such as healthcare revenue cycle management and financial services fraud prevention.  

Growing demand for multilingual and localised customer support provides opportunities to expand across North America and Europe by combining its nearshore delivery network with technologies such as MindSpeech. 

Fusion CX depends on a limited number of large enterprise customers. Its top 10 clients contributed 44.26% of revenue from operations for the nine months ended December 31, 2024, compared with 41.04% in FY2024. Loss of a major client or non-renewal of contracts could affect revenue and cash flows.  

Rapid advances in generative AI, voice AI and large language models could reduce demand for traditional human-led customer support. The company also plans to invest ₹74.70 crore in upgrading its AI platforms, with no assurance that these investments will generate the expected returns.  

Fusion CX has completed six acquisitions since 2019. Integrating acquired businesses may involve challenges related to technology systems, employee retention, company culture and integration costs. Failure to achieve expected synergies could also result in impairment of goodwill.  

The company and its subsidiaries are involved in various legal proceedings, including two pending insolvency petitions before the NCLT Kolkata and disputes in the US involving subsidiaries. The outcomes of these proceedings could result in financial liabilities and additional management costs.  

Consolidated outstanding borrowings stood at ₹328.69 crore as of April 30, 2025. Around 65% of borrowings carried variable interest rates as of December 31, 2024, exposing the company to higher finance costs if interest rates rise.  

Fusion CX reported Days Sales Outstanding of 88 days for the nine months ended December 31, 2024, compared with 94 days in FY2024. Its allowance for expected credit losses stood at ₹24.66 crore as of December 31, 2024.  

The company earns a significant portion of its revenue in foreign currencies while many of its operating costs are incurred in India. Adverse currency movements, particularly a strengthening of the Indian rupee against the US dollar, could put pressure on revenue and margins. 

Fusion CX IPO DRHP 

Nuvama Wealth Management Limited 

Contact Number: 040-79615565 

Email Address: fusion.ipo@kfintech.com