Global data analytics firm Fractal Analytics has secured a staggering $100 million (approx INR 667 crores) through a strategic partnership with Khazanah Nasional Berhad. Khazanah Nasional Berhad is the strategic investment fund of the Government of Malaysia.
The investment is one of the largest funding round of an Indian technology company in this year. Mumbai-based Fractal Analytics will use the funds to further propel its growth in its AI & deep learning based software stack used for advanced analytics.
Commenting on the announcement and partnership with Khazanah, Srikanth Velamakanni, co-founder & CEO of Fractal Analytics said,
“There is a revolution underway in advanced analytics, deep learning and visual storytelling. The investment from Khazanah will help us invest further in our AI & deep learning based software stack.”
Fractal Analytics is one of the earliest tech companies in India, founded in 2000 around the first dot-com bubble. After facing initial hurdles in pitching its analytics products to clients in India, the company has been witnessing a 60% compounded annual growth rate over last six years.
It helps Fortune 500 companies make better data-driven decisions and gain crucial customer insights through its advanced analytics, deep learning and visual storytelling. The company counts several renowned names as its clients such as Microsoft, Philips, P&G, Franklin Templeton Investments, etc.
On their investment into Fractal,Chinta Bhagat, Executive Director at Khazanah said,
“We believe that the availability of large amounts of real-time information and the ability to analyse it at scale, will transform how the world makes decisions. Fractal is one of the companies leading this change and with our partnership, it can dramatically accelerate its programmatic investments and acquisitions.”
Headquartered at Mumbai, Fractal Analytics has offices in 13 global locations including the US, UK, and India. It had raised $25 million in 2013 from Boston-headquartered private equity firm TA Associates. This was followed by a stake purchase in 2014 by Canada’s Aimia which is one of world’s largest loyalty management firm.
With the latest investment from Khazanah, Fractal Analytics is now valued at close to $300 million (2000 crores approx). In addition to expansion and product development, the company will also utilise fresh funds for acquisition purposes.
Last year, it acquired two companies namely Imagna Analytics, an artificial intelligence startup and Mobius Innovations, a mobile-based context aware big data startup which was founded by one of the cofounders of Fractal.
The company is now looking at five more acquisitions this year which are already in the pipeline. Commenting on the same, Velamakanni said,
“We will look to acquire companies for the IP that they bring in clients who we don’t have right now.”
He further added that the company exclusively focuses on big clients who either have revenues of over $10 billion, market capitalisation of over $20 billion or have over 30 million customers.