Management Discussion and Analysis
Industry Review Globally, the fiscal year 2023-24 began on a challenging note marked by the lingering effects of the Russia-Ukraine war, high inflation, and elevated interest rates alongside a global economic slowdown. Nevertheless, as the year progressed, signs of resilience and recovery emerged across various regions. Diminished supply chain pressures led to a faster-than- expected decline in inflation, suggesting a strong possibility of a soft landing.
Fractal.ai (AI services and AI products) Our Fractal.ai segment comprises of our AI products and AI services, as detailed below. Our AI products are designed for industry specific as well as cross-industry use cases, and are built leveraging our capabilities in GenAI, LLM, AI/ML, conversational AI, computer vision, amongst others. Our AI services (includes our AI consulting and technology services) enables us to build customized AI solutions as per the client’s specific use case.
2000, we have consistently invested and positioned ourselves at the forefront of AI and machine learning. We provide end- to-end AI solutions that enable enterprises to use AI at scale, driving business impact for clients across multiple industries. Our strategic intent is to power every human decision in the enterprise, integrating AI into business processes to enhance decision making and operational efficiency, and to create at least a $1billion value for every client we work with and aspire to become the most respected enterprise AI company globally. Business Overview We design and implement end-to-end AI solutions for clients across industries. Our AI solutions comprise of our services, our products (i.e. software) and our businesses. Our comprehensive suite of AI services includes, our decision support systems, data engineering, predictive analytics, machine learning model development, amongst others. We have a suite of 15+ AI products and 4 AI businesses which enables us to customize and build solutions for our clients in conjunction with our services. Our solutions are designed to address a wide range of business needs of enterprises, across industries and across business functions such as customer analytics, risk management, supply chain optimization and marketing strategy enhancement. We partner with large and medium-sized global enterprise clients to accelerate their AI adoption. We aim to become a trusted partner to our clients including our focus client base of “Must Win Clients” which we define as enterprises that meet one of the three criterion: over US$10 billion in revenue, over US$20 billion in market capitalisation or over 30 million end-customers. Our domain expertise spans across industries, especially in our focus industry verticals, i.e., consumer packaged goods (“CPG”), technology, media and telecom (“TMT”), healthcare and life sciences (“HLS”), banking, financial services and insurance (“BFSI”), and retail. Our AI Solutions Our AI solutions span across the entire Data, Analytics and AI value chain ranging from strategy formulation, data design and management, AI and Generative AI (“GenAI”) development and deployment, as well as AI adoption. We build AI solutions for our clients leveraging our technical, domain and functional expertise built over our operating history of over two decades. Our technical expertise includes our AI, Engineering and Design (together, “AED”) capabilities which enables us to frame the right problem by factoring in human behavioural aspects, identify and engineer the required input data systems and build the required AI solution. Our domain and functional expertise is built on our experience of working with clients across industries and their various business functions including supply chain management, sales & marketing, customer experience, finance, planning & accounting, among others. We developed our own GenAI stack in Fiscal 2023 and introduced new GenAI based products including Flyfish.ai, Avalok.ai, and Astra as well as incorporated GenAI into several our existing AI products like Senseforth, Crux Intelligence and Customer Genomics. Our full suite of AI solutions comprise of our offerings under Fractal.ai (AI services and AI products) and Fractal Alpha (AI businesses) segments, as described below.
Domain Capabilities
CPG
HLS
Retail
BFSI
TMT
DATA, ANALYTICS, AND AI (DAAI) MARKET OVERVIEW
Functional Capabilities
Technical Capabilities
In the digital age, data has become an essential asset for organizations. The Data, Analytics and AI (DAAI) market is rapidly expanding as companies increasingly embrace data- driven and AI enabled strategies to enhance their business operations. AI has become a key building block to enable data- driven decision-making and enhance stakeholder experience, while ensuring operational resilience. It helps businesses and government bodies in understanding customer behaviors to launch new products, optimizing costs by automating processes, ensuring operational efficiencies by reducing manual work, providing recommendations to business users or employees, and reimagining core business functions. The core AI-led services market accounted for an estimated 27.0% (₹3 trillion or US$34 billion) of the overall third-party DAAI services spend in FY2024 and is expected to reach 52.7% (₹12 trillion or US$146 billion) by FY2029. Key trends driving growth include the integration of AI and machine learning, increased utilization of big data, cloud computing, IoT, and edge computing, real-time data analysis capabilities, and the adoption of automation and self-service analytics. These developments will enable organizations to extract insights from large, complex, and unstructured datasets, make more informed and strategic business decisions, predict outcomes, enhance operational efficiency, and improve customer engagement. Outlook Our strategic positioning as an organization with substantial scale, expanded capabilities, and robust partnerships are reflected in our order inflow and pipeline. As we begin FY25, we are building on a solid foundation that enhances our ability to drive revenue synergies. Looking back on our accomplishments and forward to the future, we are confident that the insights gained and strategies implemented will enable us to execute more effectively in FY25. We are eager to embrace upcoming opportunities and remain committed to maximizing every chance that comes our way. Company Overview Fractal is a leading provider of Artificial Intelligence (AI) and analytics solutions to the world’s most admired companies. Utilizing scientific methods and advanced data tools, we simplify complexities that hinder decision-making processes, enabling enterprises to make informed and optimal choices. We are a globally recognized artificial intelligence (AI) and analytics company, solving complex business problems for large global enterprises through our AI solutions. Founded in
Artificial Intelligence • Algorithmic decision making/Core ML • Machine vision • Generative AI • Conversational AI (NLP)
Engineering • AI engineering • Cloud engineering & Migration • Data platforms • Data Governance • Enterprise Ops & Digital Ops • Decisions Systems • Next Gen S/W development
Design • Behavioural Sciences • Design research • User experience and interaction design
Functional Capabilities • Supply chain • Financial analytics • Marketing • ESG analytics • Personalization Engines • Digital Intelligence and Experience
• ML Ops • LLM Ops
AI Products
Cognitive Order to Cash solution suite
Persona-based intuitive digital storefront
Solution to drive incremental sales
Customer analytics/ personalization
Conversational AI
Metadata extraction services
Al based integrated RTM platform
Digital consumer touchpoints analyzer
GenAl powered text- to-image generator
Hybrid data Platform
Gen Al based Cloud Migration
Data mapping and harmonization
Virtual business coach
AI-powered augmented analytics
Explore relational data and generate graphics
Al based engine to administer sensors for data quality rules
For business experiments
GenAI Powered
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Fractal Analytics Limited | Annual Report 2023-24
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