New industrial tech fund backs Fractory

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Fractory, the manufacturing technology company, headquartered in Manchester, today announces a new funding round.

Martin Vares, CEO of Fractory

The £4.2m round is led by a brand-new early-stage investment company, Kvanted, whose focus is on companies building industrial technologies in Northern Europe.

The increased capital will be used to grow Fractory in markets and territories where the company already operates, and where foundations are well-established, most especially the UK. Specifically, Fractory aims to become an irreplaceable partner for its growing client base, achieving this by increasing the capabilities it offers and the capacities it handles.

Fractory started in 2017 in the Estonian market and has at least doubled its turnover year after year. It employs 70 people and is now headquartered in Manchester and this year The FT and Statista ranked it 32nd in its list of Europe’s 1000 Fastest Growing companies.

Martin Vares, Fractory’s CEO, explains recent growth and plans for further growth: "This year we received our first order of more than £2 million. In the beginning, orders were smaller and customers appreciated us mostly for our platform's automation, speed and convenience. But more customers now also recognise our network of supply partners, the quality and delivery reliability they represent. The new investment will help us grow exactly this type of customer as we expand our network of quality-assured partners and simplify supply chains for customers.”

Fractory and Kvanted in Cooperation

Martin Vares explains the importance of the new investor: “Kvanted understands exactly what we are doing. They have a longer-than-average investment period to align with the lengthier development cycles in industrial tech. And they act as a connector, in our case bringing innovative technology providers together with traditional industrial companies. Kvanted has broad industry experience and unique networks, and their fund investors include prominent industrial players such as Oras Invest. It’s the best possible strategic partnership for
Fractory at this stage.”

Kvanted's founding partner, Axel Ahlström, says: “There’s a lot of untapped potential in the industrial sector, and our aim is to accelerate industrial innovation, connecting industrial technology startups with established corporations. Fractory, which is one of those startups, is already on an impressive trajectory, with increasing client numbers, and our aim is to help it become more widely adopted across industry. Fractory’s important position in the world of manufacturing is clear to us and we see the scope for its growth increasing through this partnership.”

Kvanted is a just-launched early-stage investor, having raised its first fund of 70 million euros. Fractory is its first investment.