TPG will become a minority shareholder in the AI and advanced analytics solutions provider by making a primary investment in the latter apart from buying its secondary shares from Funds advised by Apax Partners
Fractal, a US-based provider of artificial intelligence (AI) and advanced analytics solutions, has secured an investment of $360m from alternative asset firm TPG.
TPG will acquire a minority stake in the AI company through TPG Capital Asia, its Asia-focused private equity platform. The investment will be made via a mix of primary investment and purchase of secondary shares from Funds advised by Apax Partners, which will continue as a major shareholder in the AI company after the deal.
TPG Capital Asia co-managing partner Puneet Bhatia said: “In the growing market for data and analytics services, Fractal continues to stand out as one of the most well-established, differentiated providers and a clear leader in AI and advanced analytics.
“The quality of Fractal’s offering has enabled them to build a deep and loyal client -base, made up of some of the world’s largest and most respected companies.”
Fractal has a workforce of over 3,500 with offices in 16 locations across the US, India, the UK, Ukraine, Australia, Singapore, and other countries. The company, which was founded in 2000, had secured an investment of $200m in 2019 from funds advised by Apax Partners.
Its products include Qure.ai, Crux Intelligence, Theremin.ai, Eugenie.ai, Samya.ai, Senseforth.ai, and Senseforth.ai. The products are all designed to help in making human decisions across enterprises.
Qure.ai caters to radiologists for making diagnostic decisions, Crux Intelligence is for CEOs and senior executives, while Theremin.ai is for making investment decisions. Eugenie.ai has been designed for identifying anomalies in high-velocity data and Samya.ai is related to enterprise revenue growth management.
Senseforth.ai is for the automation of customer interactions at scale.
Fractal co-founder and group CEO Srikanth Velamakanni said: “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.
“TPG’s capabilities across all our markets and their proven success in building and supporting top AI providers is the perfect complement to the partnership we’ve enjoyed with Apax, whose insight and expertise have been instrumental in accelerating our growth.”
The investment by TPG is anticipated to close by Q1 2022.