Fractory, the manufacturing technology company, headquartered in Manchester, 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
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
Kvanted is a just-launched early-stage investor, having raised its first fund of 70 million euros.
Fractory is its first investment.
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.
“That existing investors are increasing their interest is a sign of approval,” says Martin Vares,
“VC’s, like Superhero Capital, continuing to back us is a vote of confidence in our considerable
potential. Also, that entrepreneurs like Taavi Kotka are with us again in this round is very special.”
Jakob Storå, a partner at Finland-based Superhero Capital, says:
“Superhero participated in Fractory’s first investment round back in 2019. As we’ve been able to
witness Fractory’s progress close-up and see its great potential, we are happy to support the
company in this round as well. Fractory is building a connected manufacturing ecosystem that has
the potential to revolutionise manufacturing procurement and we are super-excited to be part of
the next step on this journey.
“We’re also happy that Kvanted joins us as an investor in this round. With its industry expertise and
connections, Kvanted can help Fractory’s solution get an even stronger foothold in the market.”
Fractory has been trading since 2017 and was founded by mechanical engineer-turned entrepreneur
Martin Vares along with Joosep Merelaht and Rein Torm. Fractory is an online platform connecting
engineers with production capacity. It has automated the manufacturing procurement process so
that engineers simply upload design files to get instant quotes and delivery times, with Fractory
taking responsibility for every aspect of the order. Customers use Fractory for series manufacturing,
project manufacturing and prototyping too.
Founded in 2023, Kvanted is an early-stage investor focusing on industrial technology. Founded and
headquartered in Helsinki, Kvanted focuses on early-stage companies developing new software,
hardware, and service solutions for the industrial sector with a mission to build a more sustainable
future. With their first fund of €70 million, Kvanted is the first pure-play industrial technology
investor in the Nordic region. The founding partners of Kvanted are Eerik Paasikivi, Maria
Wasastjerna, and Axel Ahlström.
With a mission of building a more sustainable and efficient industry, Kvanted connects traditional
industries with innovative technology startups. Kvanted invests in both hardware and software alike,
as well as service companies developing new solutions for the industrial value chain, with a strong
focus on industrial automation, sustainability, and supply chain resilience.
The first fund will invest in around 20 companies, with initial investments ranging from €0.5 to €3
million, and a longer-than-average investment term to align with the longer development cycles in
the industrial domain.