AI startup Fractal becomes unicorn with $360 million investment from TPG
Fractal, an artificial intelligence (AI) and analytics solutions firm, has raised $360 million (about Rs 2,700 crores) from private equity firm TPG, entering the unicorn club. The investment will be used to scale their offerings and meet rising demand globally.
The New York-based AI startup has, among its customers, Google and Wells Fargo and has more than 3,500 employees across 16 global locations, including the United States, the UK, Ukraine, India, Singapore, and Australia.
The new round of financing valued the company ‘at well north of $1 billion,’ said Srikanth Velamakanni, Co-Founder and Group Chief Executive at Fractal, in an interview with TechCrunch. The transaction, which includes a combination of primary investment and secondary share purchase from Funds advised by Apax, is expected to close by the first quarter of 2022.
‘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,’ said Pranay Agrawal, Co-founder & CEO, Fractal.
Fractal is building a great workplace and an innovative culture that’s driving significant client outcomes through their ‘user-focused, decision-backwards’ approach to solving problems, according to Srikanth. ‘We continue to see great momentum in how clients are leveraging AI to accelerate digital transformation, Srikanth adds.
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.