AI startup Fractal gains US$360m investment from TPG
Fractal, a global provider of artificial intelligence and advanced analytics solutions, has received a US$360 million investment from TPG through its Asia-focused private equity platform TPG Capital Asia.
The transaction includes a combination of primary investment and secondary share purchase from Funds advised by Apax, who will remain a major shareholder following the transaction.
"We continue to see great momentum in how clients are leveraging AI to accelerate digital transformation. Fractal is building a great workplace and an innovative culture that's driving significant client outcomes through our 'user focused, decision-backwards' approach to solving problems," said Srikanth Velamakanni, Co-founder & Group CEO, Fractal. "TPG's capabilities across all our markets and their proven success in building and supporting top AI providers is the perfect complement to the partnership we've enjoyed with Apax, whose insight and expertise have been instrumental in accelerating our growth."
Providing solutions to empower organisations
Co-founded by Srikanth Velamakanni and Pranay Agrawal in Mumbai in 2000, New York-headquartered Fractal provides artificial intelligence and analytics solutions to Fortune 500 companies. Fractal has more than 3500 employees across 16 global locations, including the United States, UK, Ukraine, India, Singapore, and Australia.
Pranay Agrawal, Co-founder & CEO, Fractal, said: "The demand for AI is surging across the enterprise. Our AI solutions and products, along with our globally recognised team of experts, empower these organisations to realise and maximise their full potential. Apax has been a great partner to us as we have worked to grow our business, providing valuable insights from their tech experience, operational leadership, and access to their unique network. As we continue to build upon this foundation, the investment from TPG will accelerate our ability to scale and meet this rising demand globally."
The transaction is expected to close by the first quarter of 2022.
Leveraging AI to accelerate digital transformation
Fractal is one of the most prominent players in the Artificial Intelligence space. Fractal's mission is to power every human decision in the enterprise and brings AI, engineering, and design to help the world's most admired Fortune 500® companies.
As part of the transaction, TPG's Puneet Bhatia and Vivek Mohan will join Fractal's board of directors. All current directors including Gavin Patterson, Rohan Haldea, Shashank Singh, and Gulu Mirchandani will continue to serve on the company's board. Both TPG and Apax will be minority shareholders in the company.
