Fractal (fractal.ai), a provider of artificial intelligence and advanced analytics solutions, has reached a definitive deal to raise $360 million from TPG at a $1 billion valuation, making it the second unicorn of 2022 after Mamaearth. TPG Capital Asia, the firm's Asia-focused private equity platform, will invest $360 million (Rs 2,700 crore) in a transaction that comprises a combination of primary investment and secondary share purchase from funds managed by Apax, which will remain a substantial stakeholder following the transaction. The deal is expected to be completed in the first quarter of 2022.

TPG's Puneet Bhatia and Vivek Mohan will join Fractal's board of directors as part of the deal. All present directors will remain on the board of directors, including Gavin Patterson, Rohan Haldea, Shashank Singh, and Gulu Mirchandani. TPG and Apax will each have a minority stake in the company.

"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," said Srikanth Velamakanni, co-founder & Group CEO, Fractal said.

“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,” he added.

Fractal collaborates directly with Fortune 500 firms to provide AI capabilities, engineering, and design enhancements. Fractal employs over 3,500 people in 16 locations throughout the world, including the United States, the United Kingdom, Ukraine, India, Singapore, and Australia.

The demand for AI is increasing across the workplace, according to Pranay Agrawal, co-founder and CEO.

“Our AI solutions and products, along with our globally recognized team of experts, empower these organizations to realize and maximize their full potential.”

“Our AI solutions and products, along with our globally recognized team of experts, empower these organizations to realize and maximize their full potential” “As we continue to build upon this foundation, the investment from TPG will accelerate our ability to scale and meet this rising demand globally,” Agrawal added.