[Funding alert] TPG invests $360M in AI and advanced analytics solutions provider Fractal

TPG Capital Asia has signed a definitive investment agreement to invest $360 million in 22-year-old AI and advanced analytics company Fractal across primary and secondary transactions.
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New York, US, and Mumbai-headquartered artificial intelligence (AI) and advanced analytics solutions provider Fractal on Wednesday announced raising $360 million from TPG Capital Asia, the Asia-focused private equity platform of global alternative asset firm TPG.

The definitive investment agreement between the parties is expected to close by the first quarter of 2022.

The current round will take the total equity capital raised by the company to $685 million and see TPG’s Puneet Bhatia and Vivek Mohan join Fractal’s board of directors. 

According to media reports, Fractal was valued at over $1 billion as part of the funding round. Queries sent to the company remained unanswered at the time of publishing the article.

Srikanth Velamakanni, Co-founder and Group CEO, Fractal

The round is a combination of primary investment and secondary share purchase, said a statement issued by the company, without offering the break-up. Funds advised by Apax will participate in the secondary share purchase. Both TPG and Apax will be minority shareholders in the company, the statement added. 

Previously, Fractal had raised $200 million from funds advised by private equity advisory firm Apax Partners in 2019 for a significant minority stake at a valuation of $500 million. 

“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 and Group CEO of Fractal, in the statement.

In an interview with Bloomberg in 2021, Srikanth had said the company was also contemplating a public market offering. 

The company was founded in 2000 by Srikanth and Pranay Agrawal. Fractal works with multiple Fortune 500 companies, bringing together AI, engineering, and design to power decisions.

At present, Fractal employs 3,500 people across 16 global locations, including the US, UK, Ukraine, India, Singapore, and Australia.

Edited by Suman Singh

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