Fractal Announces $360 Million Investment from TPG

The transaction includes a combination of primary investment and secondary share purchase from funds advised by Apax, which will remain a major shareholder following the transaction.

(Image credit: Gerd Altmann.)

TPG (San Francisco), a global alternative asset firm, and Fractal (fractal.ai, New York/Mumbai), a global provider of artificial intelligence and advanced analytics solutions to Fortune 500 companies including in the insurance and financial services industries, announced that they have signed a definitive investment agreement. TPG is investing $360 million in Fractal through TPG Capital Asia, the firm’s Asia-focused private equity platform, in a transaction that includes a combination of primary investment and secondary share purchase from funds advised by Apax (London), which will remain a major shareholder following the transaction. The transaction is expected to close by the first quarter of 2022. Additional terms were not disclosed.

Srikanth Velamakanni, Co-founder & Group CEO, Fractal.

TPG is a prominent investor in software and enterprise technology with extensive experience partnering with providers of major global AI solutions, business analytics, and data processing companies. Current and past investments include C3 AI, Digital.ai, LLamasoft, MX, Noodle Analytics, and Onfido.

“We continue to see great momentum in how clients are leveraging AI to accelerate digital transformation,” comments Srikanth Velamakanni, Co-founder & Group CEO, Fractal. “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.”

Pranay Agrawal, Co-founder & CEO, Fractal.

Pranay Agrawal, Co-founder & CEO, Fractal, notes that demand for AI is surging across the enterprise. “Our AI solutions and products, along with our globally recognized team of experts, empower these organizations to realize and maximize their full potential,” Agrawal says. “Apax has been a great partner to us as we have worked to grow our business, providing valuable insights from their tech experience, operational leadership, and access to their unique network. As we continue to build upon this foundation, the investment from TPG will accelerate our ability to scale and meet this rising demand globally.”

“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,” says Puneet Bhatia, Co-Managing Partner, TPG Capital Asia. “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. Srikanth and Pranay have built a highly respected and market leading company, and we are excited to partner with this proven management team to continue to enhance Fractal’s organic and strategic growth.”

Puneet Bhatia, Co-Managing Partner, TPG Capital Asia.

Rohan Haldea, and Shashank Singh, both partners at Apax, say that since partnering with Fractal, the firm has been able to combine the company’s strong value proposition and unique culture with Apax’s deep tech expertise to drive the business forward. “We are proud of the progress the company has made to date alongside Srikanth and Pranay, establishing Fractal as one of the leading players in the rapidly-evolving analytics and AI space, and look forward to partnering with TPG and Fractal in this next chapter for the business,” Haldea and Singh said in a prepared statement.

Rohan Haldea, Partner, Apax.

Describing itself as one of the most prominent players in the Artificial Intelligence space, Fractal says its mission is to power every human decision in the enterprise and bring AI, engineering, and design to help the world’s most admired Fortune 500 companies. Fractal has more than 3,500 employees across 16 global locations, including the United States, UK, Ukraine, India, Singapore, and Australia.

As part of the transaction, TPG’s Puneet Bhatia and Vivek Mohan will join Fractal’s board of directors. All current directors including Gavin Patterson, Rohan Haldea, Shashank Singh, and Gulu Mirchandani will continue to serve on the company’s board. Both TPG and APAX will be minority shareholders in the company.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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