Fractory, a Manchester-based manufacturing tech company, has announced a new £4.2m funding round led by recently founded, Finnish early-stage investment company, Kvanted, whose focus is on companies building industrial technologies in Northern Europe.
Previous investors in Fractory, which began life in Estonia before the move to Manchester, include Superhero Capital, OTB Ventures, Trind Ventures, United Angels VC, Startup Wise Guys, some of whom have also joined Kvanted in this funding round.
The increased capital will be used to grow Fractory in markets and territories where the company already operates, and where foundations are well-established, particularly the UK. Fractory, whose platform automates the manufacturing procurement process so that engineers simply upload design files to get instant quotes and delivery times, has doubled its turnover year-on-year since it was founded and currently employs 70 people. This year The FT and Statista ranked it 32nd in the ‘Europe’s 1000 Fastest Growing companies’ list.
Martin Vares, Fractory’s CEO, said: “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.”
Kvanted founding partner Axel Ahlström added: “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 and has so far raised its first fund of 70m euros which it anticipates investing in around 20 companies, with initial investments ranging from €0.5 to €3 million. Fractory is its first investment.
