Big Data rules the world and in the initial days when it was emerging as the giant of IT (Information Technology), companies that tapped into the market grew in leaps and bounds. Fractal.ai is one such company which has achieved tremendous growth over the years. Along their journey, they’ve checked a number of boxes which has made them the market leaders of the Analytics-as-a-Service space.
Fractal.ai and its IPO listing
Fractal.ai is an AI (Artificial Intelligence) company with Fortune 100 companies across the world as its clients. They are an Analytics Solution provider and a strong player in the AI space. They are confident that an Initial Public Offering (IPO) will further add to their growth story and will soon be listing publicly. Fractal is expecting a revenue growth of 37% touching $160 M in the Financial year ending March 2022.
Fractal’s growth strategy
Fractal’s growth story has been fuelled by acquisitions and funding. They ventured into analytics at a crucial juncture when it was being prioritised by organisations for their digital transformation.
The company raised funds and achieved a valuation of 12 times than its global revenue back in 2016 (INR 350 Cr). They redirected this money strategically. They invested the new funds into new markets, employed data professionals and poured money into building their data platforms.
Incubation of other AI projects
Also, a part of their growth strategy are Fractal’s strategic acquisitions of other AI projects like Qure.ai, Theremin.ai, Equgenie.ai and more recently Samya.ai. The acquisition of Samya.ai will further strengthen Fractal’s offerings and expand its reach across industries and increase their global footprint.
A few years ago, they went on an acquisition spree where they acquired start-ups for the sole purpose of building their Natural Language Processing and Deep Learning capabilities. They acquired companies like Imagna Analytics and Mobius Innovations. These acquisitions strengthened Fractal’s technology offering which naturally contributed to its growth.
The Pandemic has been a turning point for Fractal
The start-up has witnessed a business expansion with the outbreak of the pandemic. The pandemic period has boosted the demand for their services. Enterprises have been forced to move their functions and operations to the cloud.
A brand-new Initiative – Crux Intelligence
Their new initiative ‘Crux Intelligence’ is also a part of their upcoming growth strategy. Crux is a solution that offers business intelligence to enterprises and even converts the data intelligence into actionable insights.
The acquisition of Samya.ai will further strengthen Fractal’s offerings and expand its reach across industries and increase their global footprint.
What’s in it for me?
AI start-ups are continuing to raise funds. In 2020, the AI start-up community collectively raised $836.3 M in funding. Real-time AI and Deep Learning platforms have wide use cases and a variety of applications for ‘smart and intelligent’ projects across a multitude of sectors like automobile manufacturing, robotics and transportation.
Data driven SaaS solutions powered by Machine Learning and AI have immense applications in Enterprise Tech. Nascent industries like Manufacturing and Insurance need business and data intelligence AI solutions. These are the industries you can disrupt as a start-up.
While venturing into the AI space, you need to find the perfect ‘product-market’ fit. This is both crucial and a difficult step for Enterprise Tech start-ups. Irrespective of the industry you are targeting, every enterprise in the target market is unique. Your AI solution must be custom tailored to their requirements. To achieve this level of customisation, your tech team must be strong. Thus, you need to invest in hiring data scientists, engineers and technologists. Investor interest around AI and data intelligence is for start-ups that are building customised AI solutions for previously unsolvable problems.