Fractal Gets $25 Million for Big Data Analytics

Fractal Analytics has seen its revenue triple in the last two years. TA Associates has invested $25 million for a minority stake of the company, which provides big data analytics primarily to the Fortune 500.

Jason Verge

June 24, 2013

3 Min Read
Fractal Gets $25 Million for Big Data Analytics

Fractal Analytics has received a $25 million investment from TA Associates, which is taking a minority stake in the San Mateo-based company. Fractal provides advanced Big Data analytics, with almost all of its revenue coming from Fortune 500 companies. The funding is going towards growth rather than paying the bills, as the company is apparently profitable. The capital will go towards global expansion, growing the sales team and building out more intellectual property and products.

Fractal Analytics helps companies understand consumers, help earn customer loyalty and make better data-informed decisions. It consults companies on their various products and pricing strategies based on examining this data, institutionalizing data-driven decision making. The company’s flagship offering is called Customer Genomics, which helps marketers learn complex customer behavior at an individual level. It consists of proprietary pattern recognition and machine learning algorithms that learn from each transaction and customer interaction. Customer genomics also tracks these interactions across social media. The end result is a complete view of customers across attitudinal and behavioral dimensions.

Fractal Analytics was founded by former investment bankers Srikanth Velamakanni and Pranay Agrawal in a Mumbai suburb, and it has seen tremendous growth recently.

Growing Demand for Analytics

“Over the last two years, Fractal has seen revenues almost triple in size, making us one of the fastest growing companies in the industry,” said Pranay Agrawal, Co-Founder and EVP, Fractal Analytics. “We are excited about how this partnership will help us expand our footprint and meet the growing client demand for analytics solutions. We are confident this collaboration with TA will prove beneficial to our clients and employees.” The company now employs over 600 with revenue jumping from $7 million in 2011 to an expected $35 million this fiscal year.

The investment will fuel further developments going forward. “We chose to partner with TA Associates because of their excellent track record in helping profitable companies become outstanding businesses,” said Srikanth Velamakanni, Co-Founder & CEO of Fractal Analytics. “We are passionate about helping companies leverage advanced analytics to better understand consumers, optimize pricing & marketing and compete more effectively in the marketplace. Our partnership with TA will help us fuel this passion further.”

Analytics and Big data companies continue to attract funding and investment worldwide as many look to capitalize on a market expected to grow exponentially.  “We believe that the big data space represents a very significant opportunity as companies have understood the power of data driven decision making but are struggling to operationalize and institutionalize analytics inside their organizations,” said Naveen Wadhera, Director and Country Head, TA Associates “Fractal is one of the most respected players globally in this space and has been experiencing accelerated growth, making it the ideal company with which to partner. We look forward to working with the company’s management team to further build value in Fractal.” Wadhera will join the Fractal Analytics Board of Directors.

“Fractal has a top notch team of data scientists and world-class analytics solutions that continue to create tremendous business impact for leading Fortune 500 companies,” said Kenneth T. Schiciano, a Managing Director at TA Associates who also will join the Fractal Analytics Board of Directors. “We are delighted to back the company in its mission to institutionalize data driven decision making in corporations, and anticipate a very mutually beneficial relationship.”

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