Enterprise AI startup Fractal Analytics raises $360M
The raise involved a combination of primary investment and secondary share purchase from funds advised by Apax Partners. The deal will close by the end of the first quarter, after which Apax will continue to remain a major shareholder, Fractal said.
Fractal was founded back in 2000 in Mumbai, India, but is now based in New York, selling AI and analytics software to numerous Fortune 500 companies.
Fractal co-founder and Group Chief Executive Officer Srikanth Velamakanni told TechCrunch in an interview the company’s platform helps enterprises “solve every human problem.” It covers a wide scope, providing solutions to sales, marketing and supply chain problems, to name just a few.
Its software is used by companies in multiple industries. For example, its Qure.ai product is used by radiologists to make diagnostic decisions, while Theremin.ai is used by investors to aid their decision-making. Other industries include retail and life sciences.
Fractal works with more than 90 of the Fortune 500, Velamakanni said. The company claims to be profitable too, and expects to log revenue of more than $165 million in its fiscal year ending in March 2022.
The cash from today’s investment will help the company look for more growth opportunities, perhaps by acquiring or investing in smaller firms, Velamakanni said. He pointed to the company’s investment in conversational AI startup Senseforth.ai Inc. last August as an example of how Fractal may use the funds.
Besides getting more cash in its kitty, Fractal will also benefit from having a “great long-term partner” in TPG, Velamakanni added. He said TPG’s experience will be beneficial for Fractal as it looks to take on bigger rivals such as Accenture Plc, Deloitte Touche Tohmatsu Ltd. and C3.ai Inc. in AI consulting.
Fractal is already pretty big, with more than 3,500 employees spread across 16 countries, including the U.S., U.K., India, Singapore, Ukraine and Australia.
Image: Fractal Analytics
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