Mumbai, Feb. 4 -- Squeezed out on the valuation Fractal Analytics sought for the initial public offering (IPO), its founder feels that public market investors have yet to fully understand the AI sector.

The management is citing investor scepticism towards AI complexity and the need for market education as it prepares for a market debut at a lower valuation.

"Investors don't understand complexity. They don't like complexity. And there's a huge need to just educate the market on AI because there are not a lot of AI stocks out there," Srikanth Velamakanni, founder of Fractal Analytics, told Mint in an interview.

According to Velamakanni, category creators have to go through that fire. "While there's a broader understanding that AI is grea...