Manchester ‘industrial tech’ business to expand via seven-figure funding round

Fractory, an industrial tech business, today announces a new funding round. 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.

Other participants in the funding round include all those venture capital groups, angel investors and entrepreneurs who have bought into Fractory since it launched in 2017, amongst them Superhero Capital, OTB Ventures, Trind Ventures, United Angels VC, Startup Wise Guys and Verve Ventures.

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.

That means adding more UK metal fabrication businesses to its supplier network. Fractory employs 70 people. This year it placed 32 nd in the Financial Times’ ranking of Europe’s 1,000 fastest growing companies in 2023.

Martin Vares, co-founder and CEO of Fractory, commented: “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.

Kvanted’s founding partner, Axel Ahlström, added: “It’s the best possible strategic partnership for Fractory at this stage. 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.”

By Matthew Neville – Senior Correspondent, Bdaily

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