Fractal AI’s CEO Srikanth Velamakanni states that their company is headed towards a valuation of $15 billion
- ByStartupStory | March 6, 2023
Fractal AI, backed by TPG is an AI startup established in Mumbai in 2000, counts Google, Wells Fargo, and Reckitt Benckiser among its clientele, which includes Fortune 100 and 500 companies. In early 2022, the company secured $360 million from TPG Capital Asia, a private equity firm, at a valuation of $1 billion.
Fractal AI is projected to generate a revenue run rate of Rs 2,000 crore for the fiscal year 2023.
In an interview at the Nasscom Technology and Leadership Forum, CEO Srikanth Velamakanni expressed “the company’s goal of working with the world’s 500 biggest companies and generating an annual revenue of $15 billion if each of these companies spends around $30 million with Fractal”. Velamakanni clarified that the company is not focused on valuation, but rather has a clear path to achieving the goal of becoming a $15 billion revenue company.
CEO Srikanth Velamakanni emphasised the importance of Fractal AI’s longevity as an institution, expressing his desire to emulate the success of other notable Indian companies that have endured over time. While the company has discussed the possibility of an initial public offering (IPO), Velamakanni did not provide any updates on those plans in the interview.
Fractal AI is currently engaged in developing innovative applications of AI. One such initiative involves utilising quantum computing in place of conventional computing to enhance the speed of AI.
The startup is employing this technique to aid research labs with protein folding mechanisms. Additionally, Fractal is delving into computational neuroscience, seeking to understand the decision-making processes of the human brain and how AI can assist individuals in making swift, informed decisions.
Fractal AI’s CEO Srikanth Velamakanni reflected on how attitudes towards AI have shifted over the past two decades. When the company was founded in 2000, the idea of creating AI solutions was considered impractical, but today, AI has become mainstream.
Velamakanni credited the rise of computing power and the increasing availability of data sets as factors driving AI’s success. These developments have resulted in AI algorithms achieving high levels of accuracy in cognitive tasks, sometimes even surpassing human capabilities. Velamakanni also highlighted “the impact of cutting-edge technologies such as ChatGPT, Dall.E 2, and Stable Diffusion in expanding the scope of AI”.
He noted that “AI is causing a disruption in the workforce, as individuals who don’t use AI risk being replaced by those who do”. Velamakanni drew a comparison to the internet hosting service GitHub, which has boosted coding productivity and velocity by 30-40%. He anticipates that AI will have a similar effect in the future.
Follow Startup Story
Related Posts
