Just a few days after entering the unicorn club, AI and advanced analytics startup Fractal has acquired US-based Neal Analytics for an undisclosed amount.
The deal will strengthen Fractal’s AI engineering capabilities and cloud-based offerings on Microsoft’s multi-cloud ecosystem. The acquisition will also help Fractal scale AI-based services on its platform and strengthen its presence in Pacific Northwest, Canada, and India.
Fractal cofounder and group chief executive Srikanth Velamakanni said, “This partnership will accelerate our ability to power data-driven decisions end-to-end for our Fortune-500 sized clients.”
Fractal was founded in the year 2000 by IIM-Ahmedabad graduates Srikanth Velamakanni, Pranay Agrawal, Nirmal Palaparthi, Pradeep Suryanarayan and Ramakrishna Reddy.
It provides artificial intelligence and advanced analytics solutions to Fortune 500 companies in sectors such as retail, insurance, technology, financial services and consumer goods sectors.
The acquisition comes on the heels of private equity firm TPG investing $360 Mn in the company, making it the first Indian company to earn a unicorn status in 2022. The New York-based company has raised close to $685 Mn to date.
It has more than 3,500 employees across 16 global locations, including the United States, UK, Ukraine, India, Singapore, and Australia.
Founded in 2011, Neal Analytics is a Microsoft Gold Consulting Partner with tie ups with companies such as PepsiCo, Microsoft, Intel, Nvidia and Databricks. The company has experience working on the Azure stack across multiple domains such as AI, Machine Learning and Internet of Things. The Bellevue (Washington) headquartered company has over 200 employees working across the US, Canada, and India.
Speaking on the deal, CEO Neal Analytics Dylan Dias said, ”This is an exciting opportunity to empower our people and work alongside like-minded practitioners to transform businesses with cloud, data, and AI. It will enable Neal Analytics and Fractal to grow and achieve more together.”
The deal will help Fractal improve its business performance and enable business transformation via the cloud over the coming decade.
According to Valuates Report, the global big data and business analytics segment could be worth over $684 Bn by 2030. Fractal competes against the likes of Tata Consultancy Services, Wipro, Tredence, LatentView, and Mu Sigma.
Fractal’s customers include Google, Wells Fargo and Reckitt Benckiser. The company is expected to increase its revenue by 37% to $160 Mn in the fiscal year ending March 2022.