Aimia, a world leader in loyalty management solutions, will purchase a stake in pure-play analytics provider Fractal Analytics. Fractal Analytics was co-founded by friends at IIM Ahmedabab and is the second largest pure-play analytics provider in the world. As part of this deal, Fractal will help Aimia better utilize its collection of customer data and build out intellectual property in the area of customer analytics.
“We are growing both in terms of revenue and profits, and that is making Fractal more valuable,” Fractal CEO Srikanth Velamakanni said, pointing to the substantial market demand for analytics coupled with scarcity of skills. Aimia’s India COO and CFO Vikas Choudhury said of the company, “We found that Fractal had the best cultural and sectoral fit for us.” For Aimia, finding that “fit” was a two-year global process that evaluated five analytic solutions companies.
Last year, Fractal was able to accumulate $25 million from the Boston-based firm TA Associates, and expects to reap in $40-45 million by the closing of the year. After the deal is finalized, Aimia’s chief strategy & analytics officer Eric Monteiro will join Fractal’s board.
There is a huge growth potential for the data analytics industry. “Analytics is moving from standalone project-based revenue to ongoing engagements, where the real benefits are,” Milan Sheth, technology leader at EY India, said. With the addition of Fractal, Aimia plans to continue to grow its reputation as a dominant leader in data analytics.