Artificial intelligence and advanced analytics solution provider Fractal got a $360 million investment from TPG through the firm’s TPG Capital Asia private arm.
The company said the deal includes a combination of “primary investment and secondary share purchase from funds advised by Apax, who will remain a major shareholder following the transaction.”
Additional terms of the deal were not disclosed, but the company said it expects the transaction to close sometime this quarter. Fractal’s technology helped retailers accelerate their digitalization during the post-pandemic period when online sales broke records and garnered a greater share of how consumers shop.
The investment extends TPG’s reach into the advanced technology space. The company said some of its current and past investments include C3 AI, Digital.ai, LLamasoft, MX, Noodle Analytics and Onfido, among others.
Srikanth Velamakanni, cofounder and group chief executive officer of Fractal, said the company continues 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-backward’ approach to solving problems.”
Velamakanni said 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.”
Pranay Agrawal, cofounder and CEO of Fractal, said the demand for AI is surging, and noted that the company’s AI solutions and products, “along with our globally recognized team of experts, empower these organizations to realize and maximize their full potential.”
As part of the deal, TPG’s Puneet Bhatia and Vivek Mohan will join the board of directors at Fractal. The company also said all current directors “including Gavin Patterson, Rohan Haldea, Shashank Singh and Gulu Mirchandani will continue to serve on the company’s board.” TPG and Apax will be minority shareholders in the company.
Bhatia, who serves as a co-managing partner of TPG Capital Asia, 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.” Bhatia also said 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.”