Integrating AI: From Design To Impact
Fractal started in 2000, with the idea of enabling businesses to create value by helping them make better decisions using AI and analytics. Over time, significant advancements in technology set the stage for broad adoption of AI across industry verticals, geographies and enterprises of various sizes. They recognised early on that their AI offerings must include both services capabilities as well as software products to help enterprises scale adoption of AI to deliver better outcomes.
“If the unicorn buzz is prompting people to take such risks, that is good in the long-term. The flip side is that there are a million other companies desperate to become Unicorn and dissatisfied that they are only $300 or $500 million in valuation,” said Fractal’s Velamakanni
Over the last decade the company has organically incubated Crux Intelligence, Eugenie.ai, Qure.ai, Theremin.ai. It has also acquired AI product businesses such as Samya.ai and Senseforth.ai. These AI product businesses have also started raising capital on their own, Sequoia and Mass Mutual Ventures invested in Qure and OLMO Capital has invested in Thermin.ai.
Attention On ‘Unicorn’
“If the focus is shifting from building a great business for the long term to only getting great valuation in the short term, that is not the right scenario in my opinion,” said Velamakanni.
Companies are spending significantly on technology, deep tech, as well as AI into powering decisions, thereby making the general outlook very robust. Srikanth Velamakanni asserts, “If inflation hurts the consumer and the companies that we serve, it could impact our growth as well. Otherwise, the market is in a good condition and will remain so for the next five to ten years.”
Future Plans and Strategies
Fractal has raised around $700 million of total funds in the past few years. A significant part of this goes into secondary transactions, which are not directed to the company. It acquired 174 million in revenue in the FY21-22. Further, Fractal also grew by 50 per cent this quarter over the first quarter of last fiscal.
Its short-term goal is to get to a billion dollars in revenue, build a great place to work, incubate businesses and nurture entrepreneurship. The long-term goal entails building Fractal for 100 years and beyond, create an institution that lasts beyond its current founders and contributing to make India a global AI powerhouse.
