Fractal Analytics Gets Equity Boost
Equity investors will plow $200 million into Fractal Analytics, giving funders an unspecified but “significant” minority stake in the strategic analytics and AI developer as early venture investors divest their shares.
Apax Partners said this week the transaction consists of a “secondary stake” in Fractal Analytics acquired from existing shareholders along with additional investment in the company. The deal is expected to close by the end of February.
Apax did not disclose the exact stake it acquired in Fractal Analytics, but the investment reportedly values the AI vendor at about $500 million.
Founded in 2000, Fractal Analytics, San Mateo, Calif., has so far raised $325 million in two venture and a pair of private equity rounds, according to the web site Crunchbase.com.
“The demand for AI is surging across the enterprise,” said Pranay Agrawal, co-founder and CEO of Fractal Analytics. The latest equity investment establishes Fractal Analytics as one of the world’s most well-funded AI providers.”
The investment also signals the exit of Khazanah Nasional, the Malaysian sovereign wealth fund and Fractal’s largest shareholder, along with TA Associates. The two venture funds poured about $125 million into Fractal Analytics between 2013 and 2016.
Fractal has so far rolled out several AI product startups. Among them are:
- Qure.ai, which assists radiologists in making diagnostic decisions. The startup’s platform is an AI-based chest X-ray interpretation tool. It also recently launched a tool for interpreting head CT scans.
- Cuddle.ai, a natural language-based tool for assisting executives in making operational decisions.
- A cloud-based experimentation platform called Trial Rundesigned to help companies test and refine product strategies before rollout.
Fractal said the equity investment would help it reach a goal of $1 billion in revenue generated by its AI business.