Estonian manufacturing innovator Fractory has recently raised €4.8 million, primarily backed by Finnish early-stage investment fund Kvanted, aiming to bolster its expansion in the UK and Scandinavia. The on-demand manufacturing service provider, Fractory, has successfully raised €4.8M in a funding round led by Kvanted, setting the stage for its market expansion, particularly in the United Kingdom and Scandinavia.
Launched in 2017 by Martin Vares, a mechanical engineer and entrepreneur, alongside co-founders Joosep Merelaht and Rein Torm, Fractory offers a comprehensive platform for on-demand manufacturing services. It facilitates the discovery, comparison, and completion of metal fabrication orders across various manufacturing methods. Serving industries like marine, industrial automation, and automotive, Fractory's platform enhances production speed and reduces costs.
Fractory's impressive growth trajectory, marked by a yearly doubling in turnover, captured the attention of Kvanted, a new investment fund focusing on industrial technologies in Northern Europe. Axel Ahlström, Kvanted’s founding partner, acknowledges Fractory’s pivotal role in manufacturing, envisioning increased growth through this new collaboration.
Martin Vares, Fractory's CEO, commends Kvanted's understanding of their mission and notes the fund's extended investment period, which aligns well with the developmental timelines of industrial technology. He also highlights Kvanted’s role in fostering connections between innovative tech providers and traditional industrial firms.
Fractory stands out for its efficient, high-quality, and reliable services. The company, which employs 64 people across its Estonian headquarters and international offices, reported a turnover of €15M last year. 2023 marked a significant milestone for Fractory with its first €2M+ order. Vares attributes this success to the platform's automated, fast, and convenient features, along with a growing demand for quality and delivery reliability through its partner network.
The funding round also saw participation from various venture capital funds, angel investors, and entrepreneurs who have supported Fractory from its early days, including Superhero Capital, OTB Ventures, Trind Ventures, United Angels VC, Startup Wise Guys, and Verve Ventures.
Taavi Kotka, former Chief Information Officer for the Estonian government and one of Fractory's angel investors, expresses strong belief in Fractory's potential to revolutionize the industrial sector and confidence in the founding team's vision.