Fractory Raises Seven Figure InvestmentMember News
Fractory, a platform focusing on sheet metal production services, has raised a 7-figure sum. The seed round investment comes only half a year after the previous round. Based on the recent success, existing and new investors saw an opportunity for further acceleration of progress.
Manufacturing-as-a-Service is gaining ground. Traditionally, ordering manufacturing takes a lot of time and effort. Now, the old way of constant e-mailing and back-and-forth calling is being replaced by online manufacturing. With half of Fractory’s team comprised of mechanical engineers, they were well acquainted with the problems in manufacturing.
“The sheet metal industry needs simple solutions to help the transformation towards Industry 4.0. Fractory offers just that. Our clients can minimise the time spent on procurement processes without implementing new software. The ability to compare prices and go from quoting to ordering in under a minute has been a great incentive to use our service,” explained Martin Vares, the CEO of Fractory.
“While online B2B platforms have evolved in many other industries, sheet metal industry has largely been untouched. During the last year, Fractory has successfully deployed its platform in a number of countries, with a steady 80% quarterly revenue growth. We see the potential for Fractory to be established as the leading European platform in this large industrial segment,” said Gerri Kodres, founding partner of United Angels VC.
Saving £10,000 per Engineer Annually
Fractory can manufacture using only 3D CAD models. Losing the need for manufacturing drawings alone can save a company £10,000 per engineer annually, as around 20% of a mechanical engineer’s time usually goes towards making drawings.
At the same time, purchasing managers are spending most of their time towards getting competing quotes from different manufacturers. Fractory’s automated platform sharply decreases the time spent on procurement processes. With hundreds of machines available, there’s always a number of pre-vetted partners with capabilities to execute a particular job, which also helps to keep the prices competitive.
Plans for the Investment
Fractory’s objective has been revolutionising the industry from its inception. The recently-closed round is another stepping stone in this journey. The investment was led by Trind Ventures and United Angels VC with participation from Contriber Ventures, Spring Capital and existing investors Startup Wise Guys, Nordic Angel Program and others.
“We have kept our eye on Fractory since the beginning and have been impressed by the energy and speed of the founding team. These guys are solving a problem of a traditional economy and we are excited to support their growth.” said Ivar Siimar, partner at Trind Ventures.
“The funds will be used for further expansion and acceleration. Though we have been growing at a great pace, we want to do it even faster. Our sights are on opening new markets in the coming year, but the main focus is still on the recently-opened UK market. In order to keep up with the growing interest, we need to increase our UK team five-fold by the end of the year.
We hold great service standards and customer experience in the highest regard. We will double our development team in the next few months to offer more flexibility and options to our customers. While working as a mechanical engineer, I spotted some gaping holes that need fixing. We’re doing it now. At the end of the day, our goal is to make the industry better,” concluded Martin.
Original source: https://fractory.com/fractory-investment/