Artificial Intelligence and advanced analytics solutions firm, Fractal (fractal.ai), has signed a definitive agreement to raise $360 million from global investment firm, TPG at a $1billion valuation, making it the second unicorn of 2022 after Mamaearth. The investment of $360 million (Rs 2,700 crore) will happen through TPG Capital Asia, the firm's Asia-focused private equity platform, in a transaction that includes a combination of primary investment and secondary share purchase from funds advised by Apax, who will remain a major shareholder following the transaction. The transaction is expected to close by the first quarter of 2022.
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.
"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 said.
“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,” he added.
Fractal closely works with Fortune 500 companies to bring AI capabilities, engineering and design strengthening for these enterprises. Fractal has more than 3,500 employees across 16 global locations, including the United States, UK, Ukraine, India, Singapore, and Australia.
Pranay Agrawal, co-founder & CEO said that the demand for AI is surging across the enterprise.
“Our AI solutions and products, along with our globally recognized team of experts, empower these organizations to realize and maximize their full potential” “As we continue to build upon this foundation, the investment from TPG will accelerate our ability to scale and meet this rising demand globally,” Agrawal added.
"In the growing market for data and analytics services, Fractal continues to stand out as one of the most well-established, differentiated providers and a clear leader in AI and advanced analytics," said Puneet Bhatia, Co-Managing Partner of TPG Capital Asia in a statement.
"The quality of Fractal's offering has enabled them to build a deep and loyal client -base, made up of some of the world's largest and most respected companies. Srikanth and Pranay have built a highly respected and market leading company, and we are excited to partner with this proven management team to continue to enhance Fractal's organic and strategic growth,” Bhatia added.
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