Apax Partners-backed analytics company Fractal Analytics Pvt. Ltd ended the previous financial year with a net profit, fuelled by an exceptional gain, even as the company continues to operate at a loss.
The company, which provides AI-backed services to multiple sectors from consumer to financial services, posted a net profit of Rs 194.4 crore in FY23 on back of a one-time gain of Rs 541 crore.
However, on excluding the one-time gain, the company’s net loss would stand at Rs 347 crore.
Fractal’s one-time gain can be mainly attributed to its derecognition of all assets and liabilities in Qure.ai as of April 2022.
Derecognition of an asset refers to the removal of an asset or a liability (or a portion) from an entity’s balancesheet.
To be sure, Fractal holds 37.2% in Qure.ai as of April 2023.
Meanwhile, the company’s revenue from operations grew 53.3% to Rs 1,985 crore in FY23 from Rs 1,295 crore in the fiscal year before. It has more than doubled its revenue in two financial years as its revenue in FY21 stood at Rs 873 crore.
On the other hand, the company’s expenses also shot up 52% during the period under review, to Rs 2,225 crore in FY23 from Rs 1,461 crore in the previous fiscal. A sharp rise in employee costs accounted for around 80% of the total cost incurred.
Founded in 2000, Fractal Analytics provides business analytics services through big data to companies across several sectors. It offers marketing analytics, forecasting, pricing and promotions optimisation services and consumer insights.
The company also counts global private equity (PE) firm TPG, the sovereign fund of Malaysia Khazanah Nasional and investment firm Aimia Inc., among others, as its investors. It had last raised Rs 2,700 crore from TPG’s Asia-focused private equity (PE) platform TPG Capital Asia in early last year.
Besides Qure.AI, the company also operates several other platforms, including Crux Intelligence, a platform helping senior executives in making strategic decisions; Theremin.ai, which aids in investment decisions; Eugenie.ai, which finds anomalies in high-velocity data; Samya.ai, a platform providing solutions on revenue growth management, which Fractal Analytics had acquired last year; Senseforth.ai, which automates customer interactions and Analytics Vidhya, a community offering industry-focussed training programmes.
