Fractal becomes the second unicorn after TPG invests $360 million in the company. Fractal and TPG have signed a definitive investment agreement. The Fractal investment has raised its value to $1 billion, making it the second unicorn.
How did Fractal become the second unicorn after the TPG investment?
In 2007 Fractal faced a significant setback when some founders decided to leave the firm. The founders disagreed with the choice of CEO that led the company to lose its most important clients.
Fractal is an artificial intelligence company that became the second unicorn after 21 years. Founded by five IIM graduates in 2000, the company moved to the U.S. in 2005 after significant breakthroughs with HDFC and ICICI Banks, India.
The TPG investment deal that made Fractal the second unicorn will finalize in the first quarter of 2022.
What is the future of Fractal after becoming the second unicorn?
While Fractal employs 3500 people, it plans to hire 2000 people more this year. One of the two founders Srikanth Velamakanni, group CEO, says that the company is investing in new ventures such as quantum computing and computational neuroscience.
Velamakanni said, “The fundraise will be used to further invest in products and for additional M&As. We have acquired five companies (Samya.ai, Zerogons, FinalMile, 4i, and Imagna) in 2021 for about $100 million and hope to invest a similar amount in the future.”
After becoming the second unicorn, Fractal aims to expand its geographical presence in India. The company is also targeting a $190 million revenue in FY22 while investing in Cloud solutions and AI.
What does Fractal do?
Fractal provides advanced analytics solutions and artificial intelligence to Fortune 500 companies. HDFC Bank was a big success for Fractal as they had impeccable risk management in 2008.
HDFC Bank was the most stable bank due to their mathematical risk model built by Fractal. Their initial success with ICICI Bank was a 30-minute loan product.
The demand for artificial intelligence is growing across various industries. Co-founder & CEO Pranay Agrawal said, “Our AI and Products, along with our globally recognized team for 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.”
Their products are crux intelligence to assist senior executives and CEOs in making advanced strategic and tactical decisions. Eugenie.ai to find anomalies in high-velocity data, and Theremin.ai to improve investment decisions.
Who is TPG that made Fractal the second unicorn?
TPG is a leading global alternative firm that invests in 5 multi-product platforms – Market Solutions, Growth, Impact, Real Estate, and Capital. Founded in 1992, the company has $109 billion in investment and operational teams and management assets across 12 offices globally.
The San Francisco firm strives for operational excellence and discipline. They aim to achieve their target by building dynamic products and options for their clients.
Fractal becomes the second unicorn after the TPG investment. The company is a successful turnaround story achieving the $1 billion value in 2022.