Fractal Analytics Annual Report 2023-24

Decision-making is becoming more intricate due to the vast amount of data available, leading to information overload and cognitive biases. This complexity can make it challenging for leaders to sift through the data and identify the most critical insights for effective decision-making. Powering decisions with AI for global enterprises On the other hand, AI is streamlining decision-making by providing tools to process and analyze large datasets efficiently. These tools enable leaders to extract valuable insights, identify patterns, and make data-driven decisions with greater confidence and accuracy. Over the last 24 years, Fractal Analytics Limited (Fractal) has collaborated with some of the world's most admired enterprises to help them navigate the complexities by making sense of massive data. Fractal has developed algorithms that support decision- making, enabling them to make better decisions across their operations. By leveraging a combination of data science and behavioral science, Fractal helps enterprises understand human behavior and decision-making processes, leading to more informed and effective decisions. At Fractal, we draw inspiration from math and nature. We know that under everything in nature that is beautiful and effective, there is not just science, but also math. When we look closely, math, and particularly beautiful fractal patterns, are found abundantly in nature. One can only admire the massive scale, the interconnectedness between every element, and harmony in nature. The designs, shapes, and patterns are not only for aesthetic purposes but to maximize utility and drive desired behavior. This is much like our approach of combining the strengths of AI, engineering, and design, along with domain expertise to help drive decisions and impact for our clients.

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Contents

FY 2024 highlights

YoY growth

Strong financial performance I 21,963 million

Corporate Overview

02-07

Fractal at a glance

02 04 06

Presence

Milestones

11%

Revenue from operations I 734 million EBITDA

Strategic Review

08-43

Message from Srikanth and Pranay

08 12 14 18 22 28 36 40 42

Key performance indicators

Strategy

Our capabilities

AI products

Building lasting relationships 77 Net Promoter Score (NPS) 76 Average training hours per employee I 6 million CSR spend

Client centricity People focused

Social responsibility

Sustainability

Governance

44-53

Governance

44 46 50 52

Board of directors Management team

Awards and recognitions

Statutory Reports

54-121

Notice

54 72

Board's report

Management discussion and analysis

116

Launched Flyfish First ever GenAI sales platform for consultative customer experiences Launched MarshallGoldsmith.ai AI-powered virtual version of Marshall Goldsmith Launched Kalaido.ai The text to image smart solution

Financial Statements

122-248

Standalone

122 186

Consolidated

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Fractal at a glance

Key strengths • Strategic long-term partnerships with marquee clients across industries

Key facts 24 Years of experience Served 170+ Global enterprises 10+ Industries 4,500+ Employees

Over the 24 years, Fractal is recognized as one of the most prominent providers of Artificial Intelligence to large enterprises. Fractal's vision is to power every human decision in the enterprise.

• Deep domain and technical expertise

• Track record of inventing and investing on behalf of clients • Culture of trust, transparency and freedom to nurture great talent • Demonstrated leadership in a large and growing market • Founders-led management team focused on building Fractal for the long-term

We believe AI alone is not enough to solve complex problems. It's essential to bring together algorithms (AI), strong data engineering (engineering), and design to create impactful solutions. This approach ensures that we can optimize AI algorithms with a clear objective function, connect data pipelines effectively, and design solutions that address the needs of users. Fractal has been recognized as 'Great Workplace' and 'India's Best Workplaces for Women' in the top 100 (large) category by The Great Place to Work ® Institute; featured as a leader in Data Engineering Services 2024 & Data Science Services 2024 by Information Services Group, a leader in

Analytics & AI Services Specialists Peak Matrix 2024, 2022 & 2021 by Everest Group, a leader in The Forrester Wave™ : Customer Analytics Service Providers 2023, 2021,2019 & 2017 by Forrester Research Inc. Fractal offers proprietary AI products for cross-industry and industry-specific use cases through the Fractal Alpha segment, the companies incubated and acquired by Fractal. These include easy-to-use, pre-built AI products that can be deployed by clients in an efficient manner with limited implementation efforts, as well as an AI EdTech platform business. Each AI business has its own management team.

Supporting diverse industries Our extensive experience and expertise in key industries give us the capability to deliver differentiated solutions and value-based outcomes. Through our focused approach, we are able to serve our clients' diverse requirements.

Revenue by industry (%)

Vision To power every human decision in the enterprise.

Mission To reshape business through science and advanced data tools and uncomplicate decision-making.

Consumer Packaged Goods (CPG)

Retail

Technology, Media, Telecom (TMT)

FY 2024

Values

Healthcare and Lifesciences (HLS)

Financial Services (FS)

Insurance

Others

CPGR TMT HLS BFSI Others

8/20

9/20

8/20

5/20

Learn and grow Nurture and grow exceptional professionals

Thing big, act fast Challenge the status quo and execute with speed

Extend extreme trust and be accountable Assume positive intent of others and hold each other accountable

Client first Always do what's best for the client

Top global CPG companies

Top global TMT companies

Top global HLS companies

Top global BFSI companies

Top US retailers

Fractal Analytics Limited | Annual Report 2023-24

Presence

We serve clients worldwide, and are present in 17 global locations including the United States, UK, Ukraine, India, Middle East and Australia.

GURUGRAM

EINDHOVEN

BELLEVUE

TORONTO

KYIV

LONDON

NEW YORK

PUNE

BENGALURU

BRISBANE

SYDNEY

DUBAI

CHENNAI

SAN FRANCISCO

JOHANNESBURG

MUMBAI

MELBOURNE

Note: Map not to scale

Fractal Analytics Limited | Annual Report 2023-24

Milestones

Since our inception in 2000, over 24 years, our mission has been to reshape business through science and advanced data tools, and uncomplicate decision-making. Along the way, we have tackled challenges, embraced opportunities, and grown continuously. Guided by our core values – Client First, Learn and Grow, Think Big, Act Fast, and Extend Extreme Trust and Accountability – we remain committed to powering every human decision with AI for large enterprises, globally

Acceleration phase (2022 onwards) New GenAI product launches and innovations

• Introduced several GenAI products including Flyfish.ai, Avalok.ai, and Astra • Launched new GenAI products to make expertise more accessible, including MarshallGoldsmith.ai: an AI avatar of the esteemed executive coach, and Kalaido.ai the text to image platform

Foundation (PRE-2010) The origin of empowering data‑driven decisions through AI and technology services

• Initially worked with BFSI and CPG industries; the first client was an Indian financial institution for whom we built predictive models for loan approvals within 30 minutes • Focused on large, global enterprises and expanded into the US through an office in New Jersey • Developed intellectual property (IP) for business problems, including Pincer for pricing optimization and Eavesdrop for sentiment analysis

Growth phase (2020-22)

• Expanded to Australia, UAE, and opened new offices in Canada, Pune, and Chennai • To complement organic capabilities, acquired a 100% stake in Neal Analytics, Asper.ai, and Senseforth.ai • Made a majority equity investment in Analytics Vidhya, our education technology (“EdTech”) platform • Established Responsible AI practice to help clients globally leverage AI, ethically and responsibly

Client base expansion and strengthened partnerships

Early growth (2010-15)

• Expanded in CPG and BFSI industries, entered retail and UK markets • Expanded operations by opening new offices, engaging new clients, and hiring employees

• Secured $360 million from TPG Fett Holdings Pte. Ltd.

Geographic and industry vertical expansion in building AI solutions

• Turned Unicorn

• Entered the UK market

• Formed "Fractal Sciences" in 2012

Expansion phase (2015-20) Strategic investments

• Integrated engineering and design with AI capabilities, resulting in AI products like Qure.ai (2016), AIDE, Eugenie.ai, Theremin.ai (2018), and image/video analytics (2019) • Acquired Final Mile in FY 2018 to integrate behavioral science and data science, enhancing problem- solving capabilities

• Incubated AI products like Concordia, Customer Genomics, and Trial Run to address common business problems, offering easy integration and quick deployment

• Raised external financing from TA FVCI Investors Limited

• Expanded into new industry verticals such as HLS and TMT

• Acquired 4i in FY 2017 to expand AI technology, and consulting capabilities, and deepen presence in the CPG industry • Secured investments of $200 million in FY 2019 from Quinag Bidco Limited • Expanded globally by opening offices in Canada, Germany, Netherlands, and Ukraine (via 4i acquisition)

Fractal Analytics Limited | Annual Report 2023-24

Message from Srikanth and Pranay

Dear Members, Since the launch of ChatGPT in

keeping our people at the forefront of evolving technologies. In FY24, Fractalites collectively dedicated 330,700 hours to training, averaging 76 hours per learner. Innovation We are building a world-class R&D team to advance AI research and develop capabilities that align with our clients' future needs. This commitment has led to significant achievements, including the creation of Kalaido.ai and MarshallGoldsmith.ai. Kalaido.ai is India's first Gen AI- powered text-to-image generator, using a neuroscience-based prompt methodology to enhance creativity. It generates high-quality images from text prompts in English and 17 Indian languages. Best of all, Kalaido is free to use and rivals some of the best image generation platforms available. Our second offering, MarshallGoldsmith.ai, provides everyone with access to a personal coach. Dr. Marshall Goldsmith, recognized as one of the Top Ten Business Thinkers in the World and named America's #1 executive coach by INC Magazine, brings his expertise to this platform. Trained by Dr. Goldsmith himself, the platform delivers his expert guidance and advice to users. This ensures a truly personalized coaching experience. To date, the platform has addressed over 74,000 questions. MarshallGoldsmith. ai democratizes access to world-class coaching, offering an unparalleled, personalized experience to everyone, at no cost! We have also built our own Medical Assist multimodal model, Vaidya, which competes with state-of-the- art multimodal models at answering complex questions in the medical domain. Stay tuned, as Vaidya will be launching soon to bring advanced medical assistance to everyone.

grew by 162% and by 9+ points. This was driven by tailwinds in the AI industry along with our focus on key Fortune 500 clients, what we call Must Win Clients (MWCs). The core of our strategy is to serve a thousand MWCs that meet our 10-20-30 criteria: Companies that are either $10 billion in revenue, $20 billion in market capitalization, or serve 30 million+ customers.

November 2022, AI has entered the mass adoption stage in its evolution. While AI models have been improving our lives for several years, the release of ChatGPT and other Generative AI tools has made the magic of AI more immediate, palpable, and accessible for a wide range of everyday activities. For the first time, we have a technology that understands us and is super responsive to our needs, has compressed knowledge of the world and is getting more capable every day. At Fractal, our core values guide everything we do: "Client First" drives us to always prioritize our clients' best interests, "Learn and Grow" focuses on nurturing and developing exceptional professionals, "Think Big, Act Fast" encourages us to challenge the status quo and execute with speed, and "Extend Extreme Trust and Be Accountable" means we assume positive intent from others and hold each other accountable. Client centricity Our client obsession and trust are validated by our Net Promoter Score, which stands at 77 for FY24 (April 2023-March 2024), which is our highest ever. FY24 has been a year one of strong growth and profitability. Fractal group recorded a revenue growth of 11% YoY (INR) and reported EBITDA grew from -6.0% in FY23 to 3.3% in FY24. EBITDA in absolute

77 FY 2024 NPS

We have a track record of inventing and investing on behalf of our clients and delivering value to them by identifying key emerging trends in Enterprise AI and investing in research, new product development and acquiring businesses to strengthen our capabilities. All while pushing the boundaries of AI innovation. Our people For the 8 th consecutive year, we have been certified as a Great Place To Work ® in India, USA, Australia, Canada, and the UK by The Great Place to Work Institute. We are honoured to be among the Top 25 companies in India for diversity and inclusion practices. Our commitment to creating an exceptional workplace is evident through our GPTW Trust Index score which is at 86. We are committed to building a Fractal for ALL by fostering a culture where everyone experiences a sense of belonging and is empowered to live their full potential. In the age of AI, staying ahead of the latest technological advancements is crucial for driving innovation and sustaining our competitive edge. Our in-house training function, Fractal Analytics Academy, is committed to

Fractal Analytics Limited | Annual Report 2023-24

Message from Srikanth and Pranay

Being a responsible corporate citizen Our focus on sustainability and innovation goes hand in hand, and we believe that 'Responsible AI' development is crucial for a sustainable future. We also believe AI can make the world a better place. We have incubated Qure.ai, a leading player in healthcare AI for detecting Tuberculosis, Lung cancer, heart failure, and stroke. Additionally, we are developing Eugenie.ai, which focuses on AI-driven solutions for climate change and industrial sustainability, showcasing our commitment to using AI for good and a sustainable future. Our commitment to Net Zero emissions is reaffirmed through rigorous third- party assurance and strategic environmental initiatives. This year, Fractal achieved a 'B' rating from the Carbon Disclosure Project (CDP) for its environmental management during the 2023 reporting cycle. This 'B' rating signifies that we are effectively managing our environmental impact and taking significant steps towards addressing climate issues. Fractal's Mumbai workspace received the prestigious WELL Platinum certification, the world's leading healthy building certification program. Building for the long term We are well on our path to building an organization that lasts over a hundred years. As AI adoption accelerates, we anticipate a significant increase in AI spending as clients embark on their digital transformation journeys. To harness this momentum, we will continue to channel our growth drivers by building comprehensive products

As AI adoption accelerates, we anticipate a significant increase in AI spending as clients embark on their digital transformation journeys. To harness this momentum, we will continue to channel our growth drivers by building comprehensive products and solutions that serve our clients end-to-end. Our investment in research and development will remain robust, enabling us to advance our capabilities and drive innovation.

decision and make the world a better place. Together, we will continue to push the boundaries of what AI can achieve. Regards, Srikanth Velamakanni Group Chief Executive and Vice Chairman, Fractal Group of companies Pranay Agrawal CEO, Fractal

and solutions that serve our clients end-to-end. Our investment in research and development will remain robust, enabling us to advance our capabilities and drive innovation. We will focus on scaling our operations through strategic M&A activities and partnerships with hyperscalers, while also hiring and nurturing top-tier talent to maintain our status as a great place to work. Our commitment to social responsibility and technological excellence will guide us as we navigate the future, ensuring that we remain at the forefront of the AI industry. I would like to take this moment to once again express my gratitude to our shareholders, clients, partners, and Fractalites for their unwavering support. The journey so far has been remarkable, and we are excited about the future. With our unique offering of AI and advanced data analytics, combined with our steadfast commitment to client success, we are confident that we will continue to set ourselves apart in the market. As we strive to become the world's most respected AI company, we remain dedicated to creating transformative solutions that empower every human

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Fractal Analytics Limited | Annual Report 2023-24

Key performance indicators

We achieved growth across all aspects of our business and delivered results while maintaining our commitment to investing in R&D. We are confident in our capacity to sustain this positive momentum, and our goal remains to consistently provide industry-leading profitable growth.

Net Promoter Score (NPS)

Revenue ( I in million)

EBITDA ( I in million)

Revenue by geography (%)

Americas

APAC and others

Europe and UK

12,953

19,854

734

21,963

FY 2022

FY 2023

FY 2024

FY 2022

FY 2023

FY 2024

(835)

(1,183)

FY 2022

FY 2023

FY 2022

FY 2023

FY 2024

R&D spend (% of revenue)

Revenue by segment ( I in million)

EBITDA by segment ( I in million)

Revenue by industry (%)

CPGR

TMT

HLS

BFSI

Others

1,233

21,963

19,854

FY 2022

FY 2023

FY 2024

FY 2023

FY 2024

(499)

FY 2023

FY 2024

FY 2022

FY 2023

FY 2024

(17)

(27)

(1183)

Fractal.ai Fractal Alpha Intersegment elimination

Fractal.ai Fractal Alpha Unallocated

Client concentration for Fractal.ai (%)

Top 20

Top 10

Top 5

Year

FY 2024 FY 2023

Year

FY 2024 FY 2023

Fractal.ai

21,615 19,691

Fractal.ai

1,233

(315)

Fractal Alpha

365

190

Fractal Alpha

(494)

(788)

Intersegment elimination

(17)

(27)

(5)

(80)

Total (Group)

21,963 19,854

Total (Group)

734

(1183)

FY 2022

FY 2023

FY 2024

Fractal Analytics Limited | Annual Report 2023-24

Strategy

Continue to build engines of scale We are investing in foundational organizational layers essential for our long-term growth, defining them as engines of scale. This includes developing robust, “always-on” cybersecurity infrastructure, scalable and sustainable systems and processes, expanding our incubator and innovation ecosystem, and enhancing scalable, repeatable integration processes.

We are focused on building Fractal for the long term. Our strategy is built on three key elements – take client centricity to the next level, continue to build a great place to work, and continue to build engines of scale.

We are focused on incubating breakthrough ideas from within Fractal through two core elements:

1. Fostering innovative ideas with a strong AI, engineering, and design foundation that will shape the future of enterprise AI delivery, and 2. Providing a platform to nurture, grow, and scale future- focused businesses, whether they are incubated internally or acquired. Our "Ideas to Business" program focuses on investing in new ideas, supporting their development into AI products, and transitioning them into commercial ventures. Successful AI products either stay within Fractal to enhance AI adoption or become independent businesses (Fractal Alpha). These ventures require dedicated attention through a ‘hypercare’ ecosystem, emphasizing expertise in people and culture, sales and marketing, operational excellence, and community. We will continue this approach to drive future growth. As we pursue acquisitions to enhance and build new capabilities, our focused M&A strategy aims to unlock the potential of combined teams and maximize value creation. We apply integration principles distilled from past experiences, starting integration efforts early by expanding pre-deal diligence to include cultural and operational aspects and developing joint go-to-market plans. We assess both - the value the acquisition brings, and what we offer in return. Our integration team collaborates with the target's founders and executives to prepare for the acquisition, structure the organization, and design a successful integration. We will continue refining our integration engine with each acquisition to ensure seamless integration into Fractal. In our pursuit of long-term environmental sustainability, Fractal is committed to evolving as a responsible global citizen. We have pledged to the Science Based Target Initiative (SBTi), and will set validated science-based Net Zero targets by April 2025. We have reported our GHG emissions on the CDP portal for three years and achieved a B Score for the 2023 reporting cycle. Our major corporate facilities in Mumbai and Bengaluru are LEED Gold certified, and Mumbai has also earned WELL Platinum certification as of June 2023. We aim to extend these certifications to all our global office locations.

Take client centricity to the next level Our strategy centers on elevating client centricity by focusing on Must Win Clients (MWCs), serving these clients end‑to‑end, driving success for them, and inventing and investing on their behalf. We target MWC clients defined as clients with over $10 billion in revenue or $20 billion in market cap or over 30 million customers, who are advanced in AI maturity and seek competitive differentiation. Our approach involves dedicated sales, account management, and partnership teams to attract and retain MWCs.

complementary businesses, and plan to selectively pursue acquisition and strategic investments to complement and accelerate our growth strategy. Continue to build a great place to work Our strategy focuses on building a great workplace by nurturing a culture of trust, transparency, and freedom. We hire top talent through scalable channels, invest in developing future leaders, empower Fractalites to manage their own careers, and create a smart, healthy work environment. We believe our values and principles foster a trustworthy, open environment, as reflected in our GPTW score of 86 in FY 2024. We will maintain this culture of trust and transparency, viewing Fractalites as CEOs of their careers with the freedom to shape their paths. We will continue hiring talent through robust and scalable channels such as Fractal 360 (our proprietary, AI powered hiring assessment platform), Imagineer Program (our campus recruitment program), lateral hiring program, and “return from career break” program to attract employees. We will continue to hire specialists across our career tracks, and train them through Fractal Analytics Academy (FAA) and Analytics Vidhya. At Fractal, learning is integral to our culture. We invest in both internal and external training programs to support continuous growth. Our focus on developing strong leaders is reflected in various leadership programs for all employee levels. We also promote peer learning through communities of practice like LIMEN (for Behavioral Science) and Delta (for Generative AI). We believe that enhancing collaboration between organizational units through weekly leadership connects, annual leadership meets, and functional NPS contributes to building a smart and healthy workplace.

Given our digital operations and the confidential data we handle, ongoing investment in security tools, people, processes, and infrastructure is essential. Our cybersecurity and compliance team continually assesses risk, screens for threats, and updates tools and services. We enhance governance and compliance through a blend of people, processes, and technology. With the rise of GenAI, we have implemented a usage policy to mitigate data privacy risks. Our ISO 27001:2013 and SOC 2 Type 2 certifications reflect our commitment to responsible data handling and trustworthy AI solutions. We are committed to building sustainable processes for a seamless experience at Fractal for all stakeholders. For clients, we streamline operations with well-defined processes for invoicing, receivables, and NPS surveys, integrating these into a client resource management system for comprehensive support. Internally, we aim to reduce friction in finance, sales, contracts, staffing, and knowledge management. We are implementing AI-powered talent supply chain software for efficient human capital allocation and using a proprietary AI platform for progressive assessments in hiring, which includes GenAI for question generation and AI-powered video proctoring to prevent cheating. For our employees, we strive to create a seamless experience from recruitment through to alumni status. We use external tools for client resource management, financial management, and recruiting, and have developed internal solutions like our in-house chat bot. Our virtual AI buddy, manages 65% of IT tickets and 70% of payroll queries and uses GenAI for validating Statements of Work (SoWs). We are also strengthening our processes in hiring, finance, and legal, and enhancing our AI solutions by integrating coding productivity tools and our own AI coding agents into workflows.

We partner with clients through the entire AI solution lifecycle, from ideation to adoption, leveraging our comprehensive Fractal Approach. This includes problem reframing, solution building, and scaling AI programs while enhancing our team's technical and functional capabilities. We take end-to-end program ownership by building expertise on their data, integrating with their partner and open-source ecosystem, implementing responsible AI framework, and scaling PoCs (proofs-of-concept) and PoVs (points-of-view) by solving final mile problems of Enterprise AI. Our teams, led by business partners, work closely with client stakeholders to deliver tailored AI solutions. We measure success through the lens of clients (Net Promoter Score i.e. NPS from Client Feedback surveys) and impact creation, aiming to generate at least $1 billion of value per client. We also invest in R&D to stay ahead in AI advancements, developing new solutions and acquiring businesses to enhance our capabilities. Through R&D, we continue to differentiate ourselves and enhance our AI solutions, adding capabilities in new technologies and industry verticals – we invest ~7% of our revenues in R&D annually. Our dedicated R&D teams continue to push the frontiers of fundamental AI research, and develop new products that would be relevant to clients in the future. We have a demonstrated track record of successfully identifying, acquiring, and integrating

Fractal Analytics Limited | Annual Report 2023-24

To power decisions, we combine AI, engineering, and design, with deep domain expertise Our vision is to power every human decision within an enterprise by leveraging AI, engineering, and design. We are committed to being a trusted partner in our clients’ transformative journeys, shaping the future, and achieving extraordinary outcomes in a constantly changing world.

For leaders of large enterprises, we help solve various challenges, and facilitate decisions such as:

1. Engaging deeply with consumers, customers, or employees to personalize interactions and recommend the best products 2. Reducing inefficiencies in operations such as supply chain management, forecasting, and marketing to enhance productivity and eliminate waste 3. Introducing new products successfully and faster to increase the probability of success in product launches 4. Improving the speed and quality of executive decision-making to reduce latency in business processes 5. Creating a competitive advantage and securing the business for the future by experimenting with new business models and defending against disruptive competitors

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Our capabilities

AI AI is required to build algorithms that can match or exceed human performance, and hence deliver better results. It is important to make algorithms explainable and fair, without human biases. There are six pillars on which we organize our AI capabilities–Algorithmic decision-making, machine vision, conversational AI, AI Engineering, ML Ops and GenAI. Algorithmic decision making / Core ML The process and analysis of large amounts of data produces an output such as a score, choice, or probability that can be leveraged for making AI-enabled business decisions. Machine vision The technology and methods for extraction of relevant information from visual data on an automated basis and using this information to make decisions. Our AI specialists have the capabilities to build systems to enable machines to “see” as well as for humans to understand visual data using a variety of data sources and learning algorithms. Conversational AI (NLP) Technologies that enable machines such as virtual assistants to process, understand, and respond to human languages using ML, and natural language processing. ML Ops A framework comprising of end-to-end model life-cycle management which aims to build reproducible, testable & evolvable ML models. Scaling AI solutions require model training, monitoring, deployment supported by continuously integrated pipelines, model lifecycle management and model governance. Engineering Engineering is key to not only identifying the availability, quality, type and readiness of data to build an effective AI solution, but to also build efficient data architecture that facilitates real-time automated AI solutions that are designed for scale. We leverage our engineering capabilities to operationalize the data-to-decisions process for our clients. AI Engineering 1. Data infrastructure to store, manage and harness large amounts of data effectively, 2. Compute infrastructure to develop and operationalize AI solutions, and

Fractal brings together AI, engineering, and design along with deep domain expertise to enable data-driven decision-making for enterprises.

LLM Ops The methods, strategies, and tools used to manage large language models in real-world settings. While these models are easy to use during initial testing, integrating them into commercial products poses challenges. The process involves several complex stages such as handling data, refining prompts, adjusting models, deploying them, and monitoring their performance. It also requires teamwork across different departments, from data management to machine learning engineering. GenAI The algorithms that create new content, such as images, text, or music, mimicking human creativity. Utilizing techniques like neural networks, it learns patterns from data and generates novel outputs. Foundation models act as the powerful backbone for many GenAI applications. These pre-trained models, with vast troves of knowledge, provide a strong base for tasks like text generation, image creation, and code production in GenAI. We help our clients by infusing GenAI in our existing AI solutions thereby adding new intelligence to the same, and by building GenAI led solutions from scratch. These AI solutions help in the areas of:

Approach We have experienced that problem-solving at scale to drive results requires integrating AI, engineering, and design, along with domain expertise, to deliver end-to-end AI solutions, which we call the “Fractal Approach.”

AI AI algorithms match or exceed human performance in various cognitive tasks, delivering better results.

1. Increasing productivity

2. Adding a foundational layer of intelligence, and

3. Improving user experience

To build these GenAI solutions, we leverage a variety of open source and closed source GenAI foundation models.

Engineering Seamlessly connect data pipelines to automate decisions in real-time, and at scale.

3. Technology infrastructure to support data and AI requirements in an efficient, scalable and cost-effective manner. The systems are automated with minimal requirement of human intervention. This capability allows our clients to use AI across the organization at scale. Cloud engineering and migration We design, build and deploy AI solutions at scale on public cloud platforms. Our cloud engineering capabilities include architecture consulting, data estate modernization, data governance, security and cloud cost optimization for public cloud platforms such as AWS, Microsoft Azure and Google Cloud. We believe that these cloud-driven solutions enable clients to have agile analytics, reduce down-time, scale applications, and provide out-of-box tools for driving data backed insights for decision-making.

Design Solve the right problem through deep understanding of human behavior.

Fractal Analytics Limited | Annual Report 2023-24

Our capabilities

Enterprise ops and digital operations We help automate monitoring of all the engineering projects for our clients. This allows for a controlled environment to run & govern the entire data estate as well. We also provide Platform Ops, DevSecOps, DataInsights Ops and ML Ops services. Decision systems We fuel intelligent insights for our clients by offering Support, Augmentation, Automation and Human-Machine collaboration. We build business intelligence tools & Dashboards along with Conversational AI and Web Apps / Mobile Apps. Next generation software development We are developing products such as Morpheus, Gen AI based Cloud Migration and Rationalization workbench which helps fast-track development and accelerates migration projects across different migration use cases. behavior, sometimes, interviews, surveys and focus groups tend to rely on self-reporting by participants. Therefore, we developed Ethnolab™ that uses context simulations, gamification and scenario-based research models to test the drivers behind decisions and eliminate any biases of self- reported responses. Strategic design We help clients imagine possibilities with AI, and craft impactful strategies, products and services that enhance experiences. We uncover the needs, motivations and levers of non- conscious decision-making through: • Ethnographic research, a qualitative method of research where we observe how AI and humans actually perform under real conditions of use • Lean research, a research framework that focuses on improved research outcomes by improving the experience of those most directly involved in research production • User experience research, a research method that studies target users and their requirements to add realistic context and insight to design processes

Data platforms We enable our clients to make data-driven decisions by helping them design & build scalable and cost-effective data platforms. Data platforms enable clients to store internal, external, structured, semi-structured, and unstructured data, all linked together, in one place. We believe, this improves our clients’ data analytics capabilities by reducing data fragmentation. Data governance, marketplaces We ensure that our clients are empowered with strong identity management with least privilege access, and have data encryption at rest and in-transit by leveraging cloud native services. We also leverage our cognitive accelerators and frameworks for Data Quality, Democratization, Observability and Governance. Further, through our Enterprise Marketplace, which is a persona based self- discoverable intuitive digital store front for consumers and producers to share trusted data products fueling new possibilities, we reduce the time to experiment, and drive impact through new revenue possibilities. Design User centric design is central to powering human decisions, and enhances our ability to drive meaningful business outcomes for our clients. By integrating principles from design and human behavior, we go beyond visual appeal, and make it easy for users to make sense of information, influence strategic decisions, and craft experiences that resonate deeply. This approach harnesses decades of scientific research on human behavior and decision-making, ensuring that every solution is grounded in a thorough understanding of user needs and behavior. Behavior Architecture TM We decode behavioral patterns in data turning user feedback to guide strategic decisions. Understanding the human brain, we have developed Micro-stimuli and Neuroscience-based Prompt Strategy that create evocative visuals that direct action. Our Behavior Architecture™ approach designs simple and intuitive solutions for large scale complex change management problems. We integrate principles of human-centered design with behavioral science to understand the emotions and decision-making. Using emotional appraisal, and simulated games, we understand the predominant human emotions that influence decisions. For deep understanding of human

User experience and interaction design Our design work spans from crafting delightful end-to- end experiences to beautiful and functional dashboard visualizations. We have developed a design system, the “Phi Design system”, to accelerate our design process. This design system provides tools and templates for discovery, developing wireframes (two-dimensional illustrations of an AI offering interface) and implementing AI and data analytics.

These approaches enable us to understand the system. As a result, every Fractal solution is built to smoothen decision- making, enhance usability, foster meaningful interactions and drive real, measurable results for clients.

Functional capabilities Our deep expertise in supply chain, finance, marketing, and ESG analytics, combined with our AI, engineering, and design capabilities, delivers powerful solutions across industries. By identifying and addressing common challenges across industries, we accelerate insights, and deliver exceptional value to our clients worldwide. Supply chain We enable organizations across industry verticals on supply chain strategic initiatives and operational decisions through AI solutions and increase efficiencies by solving some of their complex supply chain challenges across the supply chain network, which includes plan, source, make and deliver. Finance analytics We help clients quantify the impact of business actions using our AI solutions. Our AI solutions automate and standardize financial data, aim to reduce accounting risks and fraud to create reliable finance models for clients. We also aim to simplify finance practices by improving the accuracy and reliability of forecasting.

Marketing We help clients measure returns on investment from their marketing investments using their past investment and business performance data, and consequently help them find ways to optimize their future marketing plans. Digital intelligence and experience We help organizations engage seamlessly with their audience by reducing friction, improving consumer experience, and increasing personalization on their web and app interface. We do this through a blended approach of optimally leveraging available marketing technology assets / platforms and building & deploying advanced AIML solutions in the space. ESG analytics We enable our clients to assess their sustainability goals and track alternate sources of fuel, manage water consumption and track electricity and water wastage, among other ESG metrics. We also enable AI based predictions of carbon footprint consumption, and can provide warning prompts of upcoming disruptive changes.

Fractal Analytics Limited | Annual Report 2023-24

AI products

As an AI solution provider, we continually develop innovative

Products

strategies and solutions to ensure our clients gain a competitive advantage in a dynamic world.

At Fractal, we think ahead of our time, pioneering innovations that shape the future. Our advancements include Crux Intelligence, which revolutionized user experience through advanced Natural Language Processing (NLP). Customer Genomics, Fractal’s personalization platform, is helping Fortune 500 companies transform the way they engage with their customers. Recently, we have integrated two exciting GenAI modules to amplify business adoption and create richer experiences for customers: Customer Genie: A conversational copilot that taps into the Customer 360 database, offering on-demand portfolio insights. This feature provides real-time, data- driven intelligence to Marketing and Sales teams to inform decision-making. Micro-stimuli: A hyper-personalized content generation module that creates highly relevant and engaging communications for individual customers based on their persona and context. This module brings together the power of the recommendation engine and Fractal’s Computational Neuroscience capability (Cerebral. ai) to invoke text-to-image models and generate ‘micro- stimuli’ (customer-level interventions at any stage of their shopping journey). The additions further enhance Customer Genomics' ability to deliver end-to-end personalization solutions, enabling businesses to forge stronger connections with their customers. Additionally, our AIDE solution exemplifies our commitment to transforming data into actionable insights by using cutting-edge AI technologies. These examples showcase our dedication to pushing boundaries and delivering forward-thinking solutions.

Concordia AI-powered data harmonization platform streamlines data processes with precision and speed.

Trial Run Implements new ideas with minimal risk and maximum insight through the power of business experimentation.

Kalaido.ai Kalaido.ai is our own diffusion model for text-to-image generation, creating high-quality images from text prompts in multiple languages. For more information click or scan the QR code

For more information click or scan the QR code

Crux Intelligence Empowers business users to gain insights from enterprise data through an intuitive conversational experience.

Senseforth.ai A leading Conversational AI platform empowering global enterprises to boost revenue and cut costs with AI-powered chatbots.

Morpheus A GenAI-based cloud migration and rationalization workbench that showcases the power of GenAI in software engineering, accelerating both migration and rationalization programs.

For more information click or scan the QR code

Avalok.ai A tool that leverages the reasoning capabilities of generative models to analyze structured data. It provides valuable insights through natural language conversations with AI models.

MarshallGoldsmith.ai Leveraging the insights of renowned leadership coach Dr. Marshall Goldsmith, we converted his extensive knowledge from training sessions and books into a dataset, thereby creating his AI Twin or Avatar.

Quark Metadata-driven, decoupled, and scalable framework designed for developing agile data platforms, enabling the creation of discoverable and self-service data products.

For more information click or scan the QR code

Fractal Analytics Limited | Annual Report 2023-24

AI products

Partnership and alliances At Fractal, we partner with leading companies, including hyper scalers, data providers, and technology firms, to elevate our technology and AI offerings for our clients. These strategic alliances enable us to expand our capabilities, uncover new revenue opportunities, forge new client relationships, and drive business growth. Together, we are shaping the future of technology and innovation.

Products

Hyper scalers

AIDE Best-in-class AI-based suite of algorithms spanning various genres to deliver optimal results.

Route to Market (RTM) Route-to-market solution employs a digital-first approach to help sales and marketing teams reimagine their go-to-market strategy.

For more information click or scan the QR code

Tech platforms

Customer Genomics AI-powered automated customer intelligence platform driving the Next Best Action at any stage in the customer journey.

Enterprise Marketplace The one-stop digital storefront that addresses diverse data needs across multiple user personas. Its user- centric approach builds key features for enterprise- wide discoverability of all information assets.

Cloud, AI, Engineering platforms

For more information click or scan the QR code

eHUB It is an AI platform that enhances the ecommerce journey for brands by boosting traffic and visibility, driving conversions, optimizing investments, and increasing sales. It offers accelerators for data foundation, analytics workbench, and a consumption platform.

Fractal Analytics Limited | Annual Report 2023-24

Not just Fractal’s, but also every team’s and individual’s success and growth are intertwined with our clients’ success. Structured client feedback leading to Net Promoter Score (NPS) sought from every team member from the client’s side in any engagement is one of the most rigorously tracked metrics. Additionally, our substantial Research & Development (R&D) efforts and investments - the invention and innovation we do on behalf of our clients, our decision-backward approach, and continuous efforts to keep them informed, knowledgeable, and ahead of the curve through our thought leadership connects have worked to unlock immense value for our clients, and is possible because of our talented teams working very closely with our clients. Powering decisions and creating impact for our clients

used to generate the image using text prompt

Client centricity

Net Promoter Score – 77 Over the past couple of years, our Net Promoter Score (NPS) has consistently remained at 70 or higher (significantly higher than industry average), reflecting our remarkable growth and progress. Clients consistently rate us highly for our responsiveness, technical excellence, and business understanding. Clients expect us to deliver fresh ideas and perspectives.

Our strategic focus has been to take client centricity to the next level. We operate with integrated teams led by business partners who liaise with key client stakeholders to understand their priorities. They collaborate with internal teams to deliver the right AI solutions and capabilities, helping clients drive business outcomes and generate value.

with a focus on developing capabilities that align with our client’s future needs. This research has yielded tangible outcomes, including publicly accessible AI products such as MarshallGoldsmith.ai and Kalaido.ai. Moreover, we have developed a range of AI courses available on Coursera, catering to a broader audience and fostering widespread knowledge dissemination. 7% AI R&D spent % of revenue Industry engagement As part of our client-centric approach, we host exclusive events like Client Advisory Boards, Executive Summits, and Roundtables, and actively engage in leading third- party conferences. The platforms bring together senior executives from Fortune 500 companies to forge meaningful connections and drive impactful conversations. Our events provide a premier forum for the exchange of insights and ideas among industry leaders, with a strong emphasis on driving the next level of growth through AI. By staying ahead of industry trends and focusing on key themes and topics relevant to our clients, we ensure that the events remain at the forefront of innovation. The theme driving this year’s engagement is on Generative AI, Responsible AI, and the role of change in analytics transformation showcased our commitment to leading-edge topics. Each session is carefully crafted to deliver thought leadership content, featuring top leaders from diverse verticals in fireside chats and client panel discussions. These sessions offer valuable insights from their journeys, enriching the overall experience and learning for our attendees. Our summits provide a 'no-judgment' open ground for discussing key challenges, issues, and problems. Attendees can freely exchange ideas and learnings with their peers to collaboratively solve problems and explore innovative solutions. Additionally, our flagship magazine, ai:sight focuses on elevating value creation, driving growth, and thriving in a dynamic economic environment. We feature voices from transformational individuals who are redefining organizational operations and interactions. As agents of change, they offer unique insights and experiences.

Net Promoter Score over the years

Executive Summit Series Executive Summit events combine keynotes, fireside chats from industry experts, and peer-to-peer executive knowledge-sharing sessions.

As part of our strategy, we have identified Must Win Clients based on our 10-20-30 principle (company having a minimum revenue of $10 billion, or market capitalization of $20 billion, or customer base over 30 million). We serve these clients globally and end-to-end, driving stakeholder success, and innovate and invest on their behalf. We work with clients through the AI solution lifecycle, from ideation to adoption, empowering enterprise decision-making. Decision-backward approach Our aim is to reshape business through science and advanced data tools and uncomplicate decision-making that lead to better outcomes. Our "decision-backwards" approach starts with understanding the critical decisions needed for desired business impact. Unlike the typical "data and technology-forward" method, we begin by defining the business problems and decisions to be made, then work backward to determine the necessary data, algorithms, and systems. This user-centric method ensures we build the optimal data architecture, create the most relevant AI algorithms, and design and implement the final AI solution tailored to address specific business challenges. Investing in R&D Being client-centric also entails investing and innovating on behalf of our clients. It enables us to expedite results for our clients while demonstrating our AI expertise – we spent 7% of our revenues on R&D in FY 2023- 24. Our dedicated research team conducts extensive fundamental research in emerging areas like GenAI, Quantum computing, and Computational Neuroscience

2018 2019 2020

2021

2022

2023

2024

Recognitions The recognition we receive from respected industry leaders validates our commitment to delivering consistent value to our clients.

FACT 2023 Over 50 AI, Analytics, and GCC leaders came together for an epic exchange of ideas at FACT23.

A Leader in The Forrester Wave™: Customer Analytics Service Providers 2023, 2021,2019 & 2017 by Forrester Research Inc.

VOLUME 1: APRIL 2022

Volume 3: November 2022

Volume 2: August 2022

n ture ai The worst of human nature created the climate crisis.

Dancing to your algo-rhythm

The secret to creating enterprise AI tools that employees will adopt

The best of human ingenuity can save nature yet.

Consumers are ready to chat Behavioral science can help connect with consumers

Let’s consoli-data Analytics solutions that

saved thousands of hours a quarter

Data, Insights & Action In conversation with Diana Schildhouse of Colgate-Palmolive

The See Suite Creating risk- averse road maps for meaningful sustainability impact.

Rise and still shine Dr. Ram Charan provides innovative leadership insights on rising inflation.

Two seconds. Too long How the brain processing visual content impacts customer behavior.

Speaking for itself Fractal’s human-first speech technology brings harmony to India’s government services.

Eco. logical. Harnessing the power of AI to accelerate sustainable solutions

Sustainability capability

Erm, um, ah...tificial intelligence Innovative, literate AI: technology that speaks for itself

Get well sooner How 40 million customers were given access to AI in healthcare insurance in record time

Organizations must now leverage tech to do more for the planet

A leader in Analytics & AI Services Specialists Peak Matrix 2024, 2022 & 2021 by Everest Group

Recognized as an 'Honorable Mention’ in Magic Quadrant™ for Data & Analytics by Gartner Inc. for 2022,2021, 2020, 2019 & 2018.

ai:sight magazines

Fractal Analytics Limited | Annual Report 2023-24

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