Mumbai: Fractal Analytics is in advanced talks to raise a little over $200 million from private equity firm Apax Partners, said two people aware of the development, requesting anonymity. Apax’s investment will involve both primary and secondary components, and result in the exit of some key shareholders. Once the deal is complete, Apax will hold a significant minority stake, said the first person cited above.

Data analytics firm Fractal’s current investors include Khazanah, TA Associates and Mirc Electronics Ltd’s chairman Gulu Mirchandani. Khazanah invested $100 million in Fractal in 2016, while TA Associates invested $25 million in 2013.

“Fractal is raising an investment round for a significant minority stake with the idea of accelerating its growth and creating one the most well funded AI services providers in the world. The investment is in line with Apax’s philosophy of backing next-gen tech leaders. Fractal is poised to become the market leader in analytics," he added.

Fractal will use the capital to acquire companies to supplement its organic growth strategy with inorganic growth, the second person cited above added. “Fractal is actively looking for M&A opportunities to supplement its high organic growth rate of over 40% over last seven successive quarters. Fractal’s goal is to build the first $1 billion revenue company in the AI space," he said.

Email queries to Fractal and Apax did not elicit any response till press time.

Founded in 2000 by Srikanth Velamakanni and Pranay Agrawal, Fractal Analytics works as a strategic analytics partner to several Fortune 500 companies by bringing analytics and artificial intelligence to the decision-making process.

Fractal Analytics uses artificial intelligence-powered data analysis tools to help corporates across a wide range of industries optimize and reinvent their businesses.

Fractal employs more than 1,200 consultants globally across 15 locations, including New York, San Francisco, London, Chicago, Sydney, Mumbai, Delhi, Bangalore and Kiev.

The company’s services include products such as Cuddle.ai, a cloud-based web and mobile app to deliver AI-driven business intelligence; Qure.ai, for healthcare radiology, and Trial Run, an experimentation platform to help companies ‘test and learn’ to improve strategic and operational decisions.

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