Fractal Records Revenue of Rs 1,300 Cr in FY22, but Experiences Losses

Fractal Latest Startup News

Fractal, an Artificial Intelligence firm, became part of the unicorn club after raising $360 million from TPG in January this year. This resulted in the company being valued at $1 billion. In the previous fiscal year (FY21), Fractal's revenue had approached Rs 1,300 crore, and this number increased to Rs 1,295 crore in FY22, a 48.3% growth. 96% of the total revenue was from analytics and consulting services, which grew 44.1% to Rs 1,244 crore in FY22. Collection from subscription and licensing fees ballooned 4 times to Rs 51 cr in FY2022. Additionally, the company made Rs 19 crore from financial instruments.

Employee benefits accounted for 74 percent of overall expenses and surged 72.7 percent to Rs 1,088 cr in FY2022 from Rs 630 cr in FY2021. Legal and professional fees also shot up 73.5% to Rs 85 crore in FY22. Software maintenance charges and insurance each added Rs 28 cr, pushing the overall cost by 73.7 percent to Rs 1,461 cr during the last year. This resulted in the company slipping into losses (Rs 148 crore) in FY22, compared to a profit of Rs 36 crore in FY21. Its EBITDA and ROCE margin also turned negative with -4.91% and -9.26% respectively.

Fractal's flagship products include Crux Intelligence, Qure.ai, Eugenie.ai, Theremin.ai and Samya.ai. It competes with MuSigma, Tredence, and Quantiphi Analytics, and is eyeing an initial public offering at a $2.5 billion valuation. However, no specific timeline for the IPO has been disclosed yet.

Fractal Chief believes that India will be a major contributor to the upcoming AI revolution. To ensure that the country is able to provide enough talent for this revolution, Fractal has taken the initiative to create the talent present here. With their Imagineer program, they plan to hire talented individuals, teaching them the basics of AI. Furthermore, they have also partnered with Plaksha University, in order to train young individuals in data science and AI. Through these measures, Fractal is confident that it can bridge the talent gap in the Indian AI landscape.

You may also be interested in Uber India's Losses Decline 35% in Fiscal Year 2022

About Fractal

Founded in 2000 in Mumbai, Fractal has grown to become a global company with 3,500 employees across 16 locations, including the US, UK, Ukraine, India, Singapore, and Australia. Led by Group CEO Srikanth Velamakanni and Pranay Agrawal, CEO, Fractal has developed a range of products, such as Qure.ai, which helps radiologists make more accurate diagnoses.

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Uber India's Losses Decline 35% in Fiscal Year 2022

Uber India Latest Business News

Uber India's ride-hailing business saw decent growth in FY22, with its collection from the vertical reaching Rs 388 crore. However, the company's revenue for providing support services to group companies decreased by 87.7% to Rs 8.72 crore during the same period. Uber India's operating income was mainly derived from its ride-hailing biz, which grew 29.5% to Rs 388.23 crore in FY22 from Rs 299.7 crore in FY21. The local entity also earned non-operating income and interest on current investments of Rs 163.6 crore, taking its total revenue to Rs 560 crore.

On the expense side, Uber India booked 51% of its expenditure as the cost of materials consumed. Employee advertising cum promotional expenses and benefits declined 63.6% and 44.1%, respectively, to Rs 44 crore and Rs 151 crore during FY22. On the other hand, legal cum professional fees spiked 71.7% to Rs 28.84 crore in FY22 from Rs 16.8 crore in FY21. Uber also incurred Rs 36.28 crore in rent and utility costs. As a result, Uber India's annual expenditure declined 13.4% to Rs 853 crore in FY22 compared to Rs 985 crore in FY21. With controlled expenses, the company cut down its losses by 35.3% to Rs 216 crore last year.

The numbers for Uber India are shockingly unimpressive for the year concluding 2021, as evidenced by its EBITDA margin and return on capital employed (ROCE), which declined to -44.77% and -16.95%, respectively. This sharp decrease could be attributed to lowered employee benefits and promotional expenses on a unit level, as it took, on average, Rs 2.15 to generate a single rupee in operating revenue. 

Despite the growth in FY22, Uber India has failed to deliver on its promise of making personal vehicle ownership redundant. Its driver 'partners' and users seem unhappy with the services, and without a drastic change in approach, the suspicion remains high that the end of the road is never too far away for Uber India. Ultimately, Uber India will have to make significant changes to its approach to remain viable in the long run.

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About Uber 

Uber is a global technology company and platform that has revolutionized how people move. Uber offers a more efficient, reliable, and affordable way to travel than using traditional methods of transportation. Uber provides the convenience of ordering transportation from anywhere using a smartphone app. With just a few taps, users can order a ride from a driver who can take them to their destination safely and reliably. To date, Uber has provided billions of rides to millions of people in countries across the world, providing jobs to drivers and an efficient transportation option to many communities. In addition, Uber offers many other services, such as food delivery and boat and bike rentals. Uber has transformed the industry and changed the way people travel forever.

About Entrackr

Entrackr is an online startup news platform focused on start-ups. It covers the latest news, trends, developments and profiles of start-ups and entrepreneurs in India and across the globe. The platform also offers consulting services and helps in connecting investors and startups. Entrackr's news section covers interactions between entrepreneurs, investors and other talking of the start-up industry. It also includes a list of upcoming events and conferences so readers can stay updated on the happenings of the industry. Entrackr is a great way for startups to stay relevant and up-to-date with happenings in the start-up and venture capital world.