Fractal Analysis – Company Profile

Founded in 2000, Fractal Analytics is a leading provider of artificial intelligence (AI), design and engineering services. While it started its operations in Mumbai, the company later shifted its base to the United States. It is currently headquartered in New York and has two other offices in Chicago and Bellevue.

In India, Fractal has its headquarters in Mumbai and regional offices in Gurugram, Bengaluru and Chennai. It is present in several countries such as Canada, China, Australia, United Kingdom and Ukraine. Fractal Analytics is focused on providing its services to Fortune 500 companies in various industry segments such as financial services, insurance, technology, media, telecommunications, retail, healthcare and consumer packaged goods.

Story

At the beginning of the 21st century, many websites have emerged and gained popularity. The founders saw an opportunity to help companies better understand their target audience through the use of analytics. The idea eventually led to the launch of Fractal Analytics. The early years were quite difficult, as most companies were unaware of the power of analytics. Most companies didn’t seem interested in buying analytics as a service at that time. The founders had to go to great lengths to educate companies and make them visualize the benefits they can get from analytics.

Their first success came when they created a 30-minute loan product for ICICI Bank. Another success followed with HDFC Bank, for which Fractal built advanced mathematical risk models using AI and analytics. Building on these successes, the founders felt they could do much better in developed countries like the United States that had a strong portfolio of large multinational corporations. It was then that it was decided to move the base to the United States.

Funding

Fractal has received investments worth $685 million through five funding rounds. Major investors include TA Associates, Khazanah Nasional, Apax Partners and TPG Capital Asia. In January 2022, Fractal received a $360 million investment from TPG Capital. With this funding, Fractal’s valuation exceeded $1 billion. It took about 21 years for the company to become a unicorn. That’s quite a long time, compared to other startups that have reached unicorn status much faster. However, Fractal could do better, as it is one of the few profitable startups.

Acquisitions

In order to boost its business profile, Fractal has made a number of acquisitions over the years. It includes Mobius Innovations, Imagna Analytics, 4i, Inc., FinalMile, Zerogons, Samya and Neal Analytics.

Competitors

Fractal competes with other companies such as Mu Sigma, LatentView Analytics, Tredence Inc., TCS, Wipro, Tableau Software, Absolutdata, BRIDGEi2i and Toluna.

About the Founders

Fractal was founded by five professionals, IIM Ahmedabad alumni Srikanth Velamakanni and Pranay Agrawal, along with Ramakrishna Reddy, Pradeep Suryanarayan and Nirmal Palaparthi. For now, only Srikanth Velamakanni and Pranay Agrawal are part of the company. Co-founder Srikanth Velamakanni is currently Group Managing Director and Executive Vice President of Fractal. Pranay is currently CEO of Fractal.