Fractal Analytics is developing agentic AI projects, including the revenue-generating Cogentiq platform and the upcoming Project Pioneer. These innovations aim to enhance productivity, decision-making accuracy, and customer experiences. Despite a net loss last fiscal year, the company anticipates significant financial contributions from these AI systems and has recently raised substantial capital ahead of a planned IPO in 2024.
Fractal Analytics is advancing two agentic AI projects, marking a pivotal moment for the company, according to co-founder Srikanth Velamakanni. One of these projects is already yielding revenue, demonstrating the potential of agentic AI to enhance enterprise productivity and decision-making accuracy. Velamakanni emphasizes the intent to leverage these systems for improved customer experiences as well.
Agentic AI integrates capabilities from large language models, machine learning, and natural language processing to autonomously execute tasks with limited human involvement. Despite only 1% adoption predicted in 2024 for enterprise applications featuring agentic systems, that figure is expected to rise significantly to 33% by 2028, as reported by Gartner. Fractal’s transition to these technologies signals a strategic shift in generating revenue.
Fractal’s deployed project, named Cogentiq, is designed to analyze corporate data and generate insights to guide decision-making. Velamakanni describes it as a “marketplace of agents” intended to collaboratively address various client challenges. The company anticipates that the licensing of Cogentiq will contribute approximately 20% of its future revenue, with $5 million reported from the platform in FY25.
In the fiscal year 2024, Fractal dedicated around 7% of its revenues to research and development, prioritizing areas such as generative AI, quantum computing, and computational neuroscience. Another project, dubbed Project Pioneer, aims to facilitate software development and data science tasks autonomously. Velamakanni notes that once defined, the system can manage the breakdown of project tasks independently, yielding promising preliminary results.
Financially, Fractal reported consolidated revenues of ₹2,196 crore in FY24, reflecting a 10.6% increase compared to the previous year. Despite reporting earnings before interest, taxes, depreciation, and amortization of ₹73.4 crore, the company incurred a net loss of ₹54.7 crore, contrasting sharply with a profit of ₹194 crore in FY23, influenced by divestment activities.
In January, Fractal secured $150 million in a pre-IPO funding round, boosting the company’s valuation to $2.4 billion. This follows a prior funding round in 2022 that raised $360 million, positioning Fractal as India’s first AI unicorn. Future plans include an anticipated IPO aiming to raise $500 million, with expectations of listing on public exchanges within the year.
Fractal Analytics is strategically investing in agentic AI to revolutionize its revenue generation and product offerings. With projects like Cogentiq already generating revenue and Project Pioneer on the horizon, the company is poised for substantial growth. Despite facing a net loss in FY24, recent funding efforts and an upcoming IPO further position Fractal for significant market opportunities in the AI space.
Original Source: www.livemint.com
Leave a Reply