Fractory, a scalable digital manufacturing platform based in Manchester, has secured additional funding from the SmartCap Green Fund to accelerate its growth across the UK and Scandinavia.

The undisclosed funding round follows a previous investment led by Kvanted and aims to strengthen Fractory’s presence in existing markets while laying the groundwork for a larger Series B round.

Fractory’s mission is centered on making the traditionally resource-heavy metal industry more efficient and sustainable. By optimizing production processes and enhancing machine utilization, the company is positioning itself at the forefront of sustainable industrial innovation.

The recent funding will not only enable Fractory to expand its team but also enhance its platform, integrating crucial insights on environmental impact.

The investment will play a pivotal role in growing Fractory’s UK and Scandinavian teams, with more than a dozen new engineering and commercial roles set to be recruited.

The expansion will increase the company’s international workforce to over 90 employees, allowing Fractory to meet the rising demand from businesses across Europe.

A key focus of the funding will be enhancing supplier visibility and tracking the environmental impact of manufacturing and transportation on the platform.

Martin Vares, Fractory’s chief executive and co-founder, highlighted the importance of accessible data in addressing sustainability challenges. “The data is already there; we just have to make accessing it clear and simple,” Vares said.

Vares emphasized that Fractory’s efforts toward sustainability align with its efficiency-driven business model. “For us, efficiency means making use of the existing capacity and capabilities the market has to offer—sustainability is a very welcome additional benefit,” he explained.

With growing EU regulations around climate impact, Vares said companies must have precise data to track their supply chains' environmental footprint.

Fractory’s platform already processes vast amounts of data from manufacturing orders, positioning the company to deliver accurate insights into carbon footprints—a crucial capability as sustainability reporting becomes mandatory in the manufacturing sector.

Sille Pettai, fund manager of SmartCap Green Fund, praised Fractory as an emerging leader in the digital manufacturing space. “Fractory is streamlining metal fabrication services and improving machine utilization rates across its supplier network by up to 80%. By backing Fractory, we are endorsing their commitment to revolutionizing production processes and supply chain dynamics,” Pettai stated.

SmartCap Green Fund, which is backed by the Estonian government, focuses on investing in sustainable innovation.

Fractory’s ability to reduce material waste and boost efficiency in the metal fabrication industry aligns perfectly with the fund’s goals of supporting startups that drive sustainability and growth within manufacturing.

Image source: https://fractory.com/funding-news-2023/