TPG invests $360m in India's Fractal
TPG Capital has agreed to invest USD 360m – including primary and secondary components – in India and US-based data analytics provider Fractal. It facilitates a partial exit for Apax Partners.
Apax, which acquired an approximately 45% stake in early 2019 for USD 200m, will remain a major shareholder following the expected closing of the transaction within the quarter. Apax's investment also included a mix of primary and secondary shares, taking out a position acquired by Malaysia's Khazanah Nasional in 2016.
TPG is acquiring a minority stake via its seventh pan-Asian fund, which closed at USD 4.6bn in 2019. The private equity firm described Fractal as a clear leader in artificial intelligence (AI) and advanced analytics with a loyal client base featuring some of the largest companies globally. It will make two appointments to the board, including Puneet Bhatia, a co-managing partner at TPG Asia.
Fractal says its mission is to "power every human decision" for its enterprise clients through artificial intelligence (AI), engineering, and design. Its products include Qure, which helps radiologists make diagnostic decisions, Crux Intelligence, which helps CEOs make tactical and strategic decisions, and Theremin, which supports investment decisions.
Other tools specialize in high-velocity data, revenue growth management, and customer engagement automation, among other areas.
Fractal has more than 3,500 employees across 16 jurisdictions, including Singapore and Australia, in addition to India and the US. Revenue came to about $250 million last year, according to Bloomberg, which noted last July the company was considering an IPO. At the time of the Apax investment, there were plans to increase annual revenue to USD 1bn, although a timeframe was not specified.
"We continue to see great momentum in how clients are leveraging AI to accelerate digital transformation. 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," Srikanth Velamakanni, co-founder and group CEO of Fractal, said in a statement.
"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."
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