Funds Advised by Apax Partners Invest USD 200 Million in Fractal Analytics

By MTS Staff Writer On Jan 19, 2019

Investment Will Accelerate Fractal’s Path to a $1 Billion-Revenue Company in the AI Space

Funds advised by Apax Partners have announced a definitive agreement to invest USD 200 million for a significant minority stake in Fractal Analytics, a global provider of AI to Fortune 500 clients. The transaction, which consists of a secondary stake acquired from existing shareholders and a primary investment into the business, is expected to close by February 2019.

Founded in 2000 with the vision of powering every human decision in the enterprise, Fractal Analytics is a strategic analytics & AI partner to the most admired Fortune 500 companies globally. The company will use the investment by the Apax Funds to accelerate growth, both organically and through M&A, and to invest further in AI products and research.

Srikanth Velamakanni, Co-founder, Group Chief Executive and Executive Vice-Chairman of Fractal Analytics, said: “We are making progress on our goal to build a $1 billion-revenue company in the AI space thanks to our relentless focus on serving Fortune 500 companies globally in enabling an AI-led digital transformation in their businesses. We have been fortunate to have the backing of supportive investors in Khazanah Nasional, TA Associates and Mr. Gulu Mirchandani in this journey. We are excited about our new partnership with Apax Partners, who have an enviable track record of building scaled new-age tech services companies.”

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Pranay Agrawal, Co-founder and CEO of Fractal Analytics, said: “The demand for AI is surging across the enterprise. Our AI solutions and globally-recognized team of experts empower these organizations to realize and maximize their full potential. The investment from the Apax Funds will accelerate our ability to scale and meet this rising demand globally. It also establishes Fractal Analytics as one of the world’s most well-funded AI providers.”

Rohan Haldea, Partner at Apax Partners, said: “The data and analytics sector is attractive and growing rapidly as companies increasingly see it as a core strategic function of their business. We are delighted to partner with Fractal Analytics who are extremely well-regarded in this space due to their cutting-edge advanced analytics and AI capabilities which help their blue-chip client base solve complex problems. Srikanth and Pranay have done an excellent job building a differentiated company with a clear vision. We look forward to working with them to scale the business further.”

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Shashank Singh, Partner at Apax Partners, said: “We are keen to partner with successful companies, like Fractal Analytics, that have become global leaders. Fractal’s strong culture, which fosters employee engagement and innovation, has played a significant role in driving its success. Notably, its ability to attract high-quality data science and engineering talent has allowed the company to stay at the forefront of the rapidly-evolving analytics space.”

Chinta Bhagat, Head of Khazanah in India and chairman of Fractal, said “Khazanah is proud to have been Fractal’s largest shareholder during a period in which it scaled up rapidly into a leading global analytics player. In addition to providing growth capital, Khazanah worked closely with Fractal on streamlining the board, supporting product innovations, and bringing Fractal’s capabilities to Khazanah’s portfolio companies. We wish everyone at Fractal the very best as it embarks on its next stage of growth, and look forward to being supportive partners over the coming years”.

The Apax Funds investment in Fractal Analytics will be its 12th in the Tech Services space globally. Apax has significant experience in partnering with and growing technology services business, such as ThoughtWorks, GlobalLogic, Zensar and EVRY, and will leverage this expertise to help Fractal scale further.