The undisclosed round joins the previous round led by Kvanted, and will be used to further grow in existing markets whilst preparing for a larger Series B round. The investment will be used in part to grow the UK and Scandinavian teams, enabling Fractory to meet increasing business demands across Europe. Over a dozen engineering and commercial roles will be recruited to manage an increasing number of customer projects, growing the international team to over 90.

The funding will also be used to build supplier visibility and environmental impact of manufacturing and transportation into the platform. ‘‘The data is already there, we just have to make accessing it clear and simple.’’ says Martin Vares, Fractory’s CEO.

Martin Vares, CEO & Co-Founder, Fractory:

‘‘In Fractory’s case, sustainability and efficiency go hand in hand. Efficiency for us means making use of the existing capacity and capabilities the market has to offer—sustainability is a very welcome additional benefit.

We have a lot of data—both current and historic—that can aid our customers in their pursuit of meeting the EU’s climate regulations. Tracking the environmental impact of supply chains with precision is a challenge because getting reliable data is difficult. It’s not uncommon for companies to regularly use tens or even hundreds of manufacturers, further adding to the difficulty.

We’re well positioned to tackle this problem because the data we already process for all our orders enables us to also calculate an accurate environmental footprint—this is soon to become mandatory for businesses in the manufacturing industry.

We’re able to utilise this data, share it, and ultimately help companies decrease their environmental impact.’’

Sille Pettai, Fund Manager, SmartCap:

‘‘Fractory is emerging as a promising player in the digital manufacturing sector, leveraging its advanced platform to streamline metal fabrication services.

This investment is a crucial step in our strategy to support innovative startups that are driving efficiency and growth within the manufacturing industry. Fractory’s platform enhances machine utilisation rates in factories across their supplier network by up to 80% and decreases material waste.

By backing Fractory, we are endorsing their commitment to revolutionising production processes and enhancing supply chain dynamics.’’

SmartCap Green Fund is funded by the European Union’s NextGenerationEU. The fund is focused on investments in greentech companies operating in the fields of energy, agriculture, food, transport, logistics, materials, chemicals, and the environment.

The post Fractory Funded by SmartCap Green Fund appeared first on Fractory.

The additional capital is used for expansion in existing markets, mainly in the United Kingdom and Scandinavia. The main focus is on increasing the offered production capacity and volume in order to strengthen existing customer relationships and increase the value proposition to the growing customer base.

Fractory started in 2017 on the Estonian market and has at least doubled its turnover year after year, and in many ways through large customers. “This year we received our first order, which was over 2 million euros. While we were initially approached because of the platform’s automation, speed and convenience, more and more customers are looking for quality and delivery reliability through our network of partners. They do not need to validate or audit production partners themselves, as we take this responsibility for them. The new investment will help us in growing exactly this type of customers, in order to serve them faster, more efficiently and more comprehensively,” explained co-founder and CEO of Fractory, Martin Vares.

Investment Came From Finland

The €4.8m round is led by a brand-new early-stage investment company, Kvanted, whose focus is on companies building industrial technologies in Northern Europe.

Martin Vares explains: “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 partnership.”

Other Investors

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, Fractory CEO. “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 important.”

Taavi Kotka, the former CIO of the Estonian government and well-known software developer and angel investor, who has been an investor in Fractory since the very start, says: “Fractory is experiencing meaningful momentum and it’s easy to see where it is going with its important manufacturing solution. I believe in the transformative impact Fractory holds for the industrial sector. And I believe in the founders, in the wider team and their vision. And now in cooperation with Kvanted – a specialist investor with a strong focus on industrial efficiencies – Fractory is well-positioned to grow further, faster.”

Fractory has been trading since 2017 and was founded by mechanical engineer-turned-entrepreneur Martin Vares along with Joosep Merelaht and Rein Torm. Company is connecting engineers with production capacity. Customers use this Fractory for series manufacturing, project manufacturing and prototyping. Fractory operates mainly in Scandinavia and the United Kingdom. The company employs 64 people, and the turnover in 2022 was nearly 15 million euros.

The post Fractory Raised 5 Million Euros appeared first on Fractory.

You can now improve your cash flow by using the Buy Now, Pay Later feature Fractory offers in cooperation with Kriya.

What are the pros?

• No cash required upfront
• Credit limits to suit your needs (the check is done online and takes only minutes)
• There is no extra cost
• The are no cons

How to get Kriya’s Buy Now, Pay Later?

Applying for Buy Now, Pay Later - Fractory X Kriya

1. Go to the “Company account” tab
2. Under “Payment terms”, click “Apply now” and you’re good to go

FAQs about Kriya

Why are we offering Kriya Payments?

We are partnering with the best finance providers to give you more flexible credit options when paying for their services and more time to pay. Kriya Payments is an innovative way to help you pay from Kriya.

How does Kriya Payments work?

When you use Kriya Payments at checkout, you can choose to pay in 30 days or at the end of the following month, at no extra charge. We’ll confirm your payment choice with you via email, along with your agreed payment plan and our account details. We’ll remind you when it’s time to pay and you can organise via bank transfer.

Will this affect my credit score?

Before you can start paying later with Kriya Payments, we’ll perform a soft credit search on your business to check if you’re eligible. These kinds of searches have no impact at all on your credit score. If you pass this, Kriya Payments will be activated on your account. The first time you choose to pay with Kriya Payments at checkout, a hard search will be made (this will only happen on the first purchase). The search will appear on your credit report. Multiple hard searches in a short period of time may affect your credit score.

Who is Kriya?

Kriya is a leading UK FinTech and embedded finance platform for businesses that has been operating for 11 years. They deliver flexible finance solutions to solve the cash flow issues that get in the way of progress and have processed over £20bn in payments for UK businesses. Kriya Payments is their embedded credit product that lets businesses pay later online at checkout.

What does it cost?

There are no extra fees if you pay with Kriya Payments, as long as you settle your invoice when it’s due based on your selected payment terms.

Can I increase my limit?

If you enjoy paying with Kriya Payments but want access to a higher limit then sometimes we’re able to increase it. Making sure you successfully repay invoices on time can increase the likelihood of this. We would need a minimum of either 1 successful repayment + Open Banking connection or 3 successful repayments to consider any limit increase requests.

Further reading on Kriya’s blog:

How does buy now, pay later work in B2B?

How Kriya uses open banking to make accessing credit easier?

The post Announcement: Easy Credit Terms with Kriya appeared first on Fractory.

Our capabilities include MIG/MAG, TIG, spot and robot welding as well as soldering and brazing.

The maximum material thicknesses are:

• 20 mm for carbon steel
• 20 mm for stainless steel
• 20 mm for aluminium
• 15 mm for copper alloys

The reason for adding welding to our services is simple – you are turning to us more than ever with large-scale fabrication projects and series manufacturing. And welding is more often than not one of the necessary processes.

Welding requires trustworthy partners and expertise. We have had that in mind when growing our network of partners (over 50 UK-based manufacturing partners as of today).

We have worked with them on projects that need welding and are now confident that we can broaden our scope to include all the necessary processes for a full service.

Our value proposition in this case, as welding is not yet automated on the platform, comes in the form of efficient project management. Our engineers know where to turn to in order to get quality manufacturing for every type of process and material combination while being in sync with market costs. This can reduce your time spent on admin tasks and help you focus on creating better products.

Thus, should you have any series manufacturing or large-scale fabrication projects coming up, send your RFQ to info@fractory.com and our seasoned engineers will come back with a quote.

The post Fractory Now Offers Welding appeared first on Fractory.

What Did We Achieve in 2021?

We had quite a few plans for 2021. So, let’s start by looking at how we managed to fulfil the goals set for 2021 and then move on to 2022.

The Platform

First, the most anticipated update – automation of CNC turning and milling. We added this functionality at the latter end of 2021. You can upload your STPs to get a price for machined parts in seconds.

The user interface got a complete makeover. Allan, Fractory’s designer, made the platform easier to navigate, so you can find all the necessary buttons and dropdown menus without much effort.

Ordering “other materials” is enabled right on the platform. For example, if we haven’t listed the carbon steel you are looking for, just click on “other carbon steel” and input your specific grade to the form. We will most likely still be able to deliver.

We also implemented manufacturability feedback. You can get more information on why we cannot price the part and make the necessary design changes accordingly. For example, if the bend radius is too small for the part thickness, you will know it.

You can now view each part in 3D right on the platform by clicking on its image. This comes in especially handy should there be any manufacturability warnings as the features that need attention are highlighted.

The platform is now also able to detect countersinking. Countersunk holes are widely used and not recognising them meant the need for a manual quote. Not any more.

Company accounts have been live for a few months. These allow you to consolidate users from the same company under one account to enable:

• Use of common payment terms
• Tracking of team projects’ progress
• Creation of new shipping addresses
• Inviting team members and managing their roles

Mass edits got a remake, so you can choose parts in bulk by different parameters like thickness, manufacturing method, material, etc. to make changes at once to a common set of parts.

Bulk uploads for manufacturing drawings are now possible. Some of the manufacturing methods still need an accompanying drawing and you can upload them all at once. The connection between the part and drawing will be made automatically if the naming of the files is the same, e.g. part1.stp and part1.pdf.

New Offices

In 2021, we opened our first office in Finland.

And another one in Estonia, this time in Tallinn.

Much of the work went towards preparation to open more markets and offices in 2022. More about that later.

Team Expansion

By the end of 2020, we had 28 team members in total. We managed to more than double the number over the course of 2021, especially after our Series A round. We now stand at 63.

A lot of focus was on manning our supply chain team to ensure a smooth service. But every team got new members – from IT and sales to marketing and HR.

By the way, we are still looking to fill many more positions. If that piques your interest, check them out here.

Revenue

Our revenue grew 3X compared to 2020. The key to growth was making sure that our quality of service kept on improving.

A testament to our success in this matter is that we had 2.5X more recurring customers vs 2020. Simply put – you were happy to come back. And we were just as happy to work with you, so a big thank you from the whole team!

Number of Parts

For the first time, we hit the benchmark of 1M parts made in a year. Of course, the aforementioned recurring customers contributed hugely.

But a large portion of our production volume came from series manufacturing. You utilised our network of manufacturing partners to make sure that your recurring orders would always be delivered on time at set prices amidst the uncertainty in the market.

You come from all kinds of industries. Hence, we produced parts for a wide range of projects from boats to cruise ships, hen coops to skyscrapers and autonomous robots to drones.

Prizes

Sifted listed Fractory’s funding round as one of the Top Sustainability Deals in Europe in 2021. We are definitely striving to make the whole industry more sustainable through smarter use of resources (both physical and human), so we are honoured to get noticed for our efforts.

Fractory made the final selection for the Entrepreneurial Success Award by the Greater Manchester Chamber of Commerce.

Martin Vares, the CEO of Fractory, was recognised with the Young Entrepreneur of the Year Award in Estonia. You can read more about the journey from engineer to entrepreneur from here.

Martin was also one of the finalists for the Young Manufacturer of the Year Award at the Manufacturer MX Awards.

What Is Going to Happen in 2022?

After looking into what we managed to accomplish over the course of 2021, it’s time to move on to the present and the future. And there are plenty of reasons to do so.

New Functions on the Platform

The platform will be able to read CAD files native to Solidworks and SolidEdge. This will be enabled over the coming weeks.

Expedited orders will be available as a choice right on the platform. So if you are in a hurry, you will not have to contact us but rather just simply choose this option.

CNC machining pricing will be more flexible. Our developers are continuously working to improve our existing services and CNC machining is definitely one of them. So the platform will be able to read and quote more complex parts.

Automatic pricing for post-processing will include more methods, e.g. deburring, anodising, etc.

Fractory will offer 3D printing as a service. The importance of this manufacturing method is gaining more ground in the industrial sector and we are catering to just that.

New features for company accounts are in the works. Applying for payment terms, having a parts library and more options will be added.

A Fractory CAD plugin (or plugins) will be available to see the price in real-time in your favourite software. This will provide valuable feedback on design decisions.

New Markets

The first big milestone in new markets is going to be already in February as we are opening the doors to our US office.

By the end of 2022, Fractory will also be present in France and Italy.

The Team

We are looking to add another 40 people to our ranks over the course of 2022. This includes sales engineers, team leads, developers, finance specialists and other key personnel in all the countries we are and will be present in.

Revenue

A lot of great specialists have joined us with the same goal of making Fractory the cloud manufacturing platform. With these additions in mind, it is only logical to aim high – for another 3X in revenue growth.

Let’s work together for a successful 2022!

The post New Year’s Resolutions for 2022 appeared first on Fractory.

So, let’s start by looking how we managed to fulfil the goals set for 2020 and then move on to 2021.

What Did We Achieve in 2020?

We had a lot of ambitious plans for 2020. And despite Covid-19 throwing a wrench or two into the works, we managed to come through nicely with quite a baggage of experience with handling unforeseen circumstances.

Without further ado, here’s what Fractory managed to accomplish in 2020.

The Platform

For you, our users, the most noticeable addition is tube cutting on the platform. It conforms well with the other automated features, working smoothly with STP tubes for getting an instant quote.

Also, you can now easily select a powder coating for your parts from a list of RAL colours. You requested this feature a lot because choosing a finish on the order form greatly speeds up the overall process.

Our system is now running on a new CAD engine to speed up the processing of parts as well as increase the reliability of the system. A strong base will also allow us to add more new features and increase the level of automation by utilising the engine’s capabilities.

We also promised to eliminate the need for manual quotes whenever a part needs countersinking. So we added a stand-in solution whereby you can just add the number of countersunk holes manually to get an instant price. The final solution is still in the pipeline.

New Markets

As you can imagine, this is the area where Covid-19 took the centre stage. The situation made it pretty much impossible to make full market entries, or at least too risky.

While we did automate quoting for the US and increased orders from there significantly, our main focus was on building upon the foundations in existing markets.

Team Expansion

We started 2020 with 24 employees and ended it with 32. Most of the additions fall into either of the two categories – developers or sales engineers. The former group is responsible for adding the features you are asking for and the latter for making sure your orders come in as requested.

Client Base

The initial goal was to quintuple the client base. Until Covid. This target relied heavily on new market entries.

But we did manage to grow our client base by 2.5x while focussing on meeting more of the demands our existing customers have. This approach worked very well to increase the % of people coming back again after a pleasant first, or fifth, experience.

More than 700k Parts

From 100k to 300k and then to 700k. That’s more than 400k units added with last year alone. Hopefully we will manage to grow even more in 2021.

There were a great deal of different project from all over the place. Anything from children’s toys, Hollywood props, circus inventory and classic cars to solar energy plants, ships, unmanned military vehicles, etc. was on our plate.

Prizes

Prizes are never an objective, rather a nice by-product that comes with good work.

The nicest “by-product” we got this year came from Forbes who nominated our CEO Martin Vares in the 30 Under 30 industry and manufacturing list.

What Is Going to Happen in 2021?

So now we come to the part that requires a crystal ball. Or thinking and planning, as we are engineers after all.

What is there to look out for in 2021?

New Functions on the Platform

We are already working on manufacturability feedback. So instead of just telling you “get a manual quote”, we will tell you why you cannot get a price on the platform. Which will let you either redesign it for quicker results or go ahead with the existing design by sending it to our sales engineers. But the goal is to make the system smart enough so that the engineer’s answer would be the same – change the design as this is not manufacturable.

Accepting native CAD formats is also among the targets. Although still a work in progress, we are looking to support SolidWorks, SolidEdge, Catia V5 and Inventor.

As we said last year, getting accurate pricing for CNC machining will be a tough task but we are on it. Expect automated quotes for both milling and turning sometime over the course of 2021.

Also, we are going to implement automated detection for countersinking, so you won’t have to count all the holes yourself in order to add them to the order.

Another feature you have asked for is company-wide accounts that can include many users. They have been in the pipeline for some time now and we are looking to add this option in 2021.

Lastly, we would really like to create a Fractory CAD plugin that displays manufacturing prices instantly whenever you are working on the design side of things.

New Markets

As we see things turning for the better this year and the manufacturing market shifting its gears to accelerate once again, we are going to work hard to expand our operations to more countries in Europe as well as the US. Keep your eyes open, as we might have some surprises.

The Team

Our plans are bigger than they have ever been and this can only be done with outstanding people. So we are looking to add at least another 20 great minds to our team before the end of the year.

Client Base

All the work we do is aimed at one single goal – to get more satisfied customers to the platform. And we are looking to realise our last year’s promises this time around by increasing the client base 4-fold through gaining even more traction at existing and opening up new markets.

We hope that fulfilling all the goals above has nothing to do with hoping, as 2021 will be a little more predictable than 2020.

Let’s work together for a successful 2021!

The post New Year’s Resolutions for 2021 appeared first on Fractory.

You, the customers, come to us with a variety of requests. While prototyping and one-off spare parts are very common, many of you are taking advantage of the business model to order batches of 10,000 tubes, for example. Thus, we decided to take a deeper dive into the aspects to keep in mind when looking for someone to help with fulfilling large orders.

Serial production poses high requirements for the manufacturing partner. The main demands revolve around:

• Security of supply
• Lead times
• Competitive pricing
• Manufacturing capabilities
• Finding solutions to technical problems
• Data privacy

We will analyse each point based on our customer feedback and how they value them. Also, we add the ways how we can help with securing each aspect.

Security of Supply

How many setbacks do you encounter with your current suppliers? And how often does the contractor back away from the initial agreement?

Security of supply is the central factor for large orders because the company’s plans revolve around promises by the supplier. Breaching the agreement results with halted operations and the whole chain suffers from a failure in a single link.

Fractory’s network of partners includes over 30 regional manufacturers which enables us to offer a flexible project management service. This helps to redirect the work to other partners, should any problems arise (e.g. laser cutting equipment is down for maintenance).

Supply chain problems were especially evident during the first wave of Covid-19. We saw that actually only a few manufacturers closed their production entirely. Still, partial closure and the application of shifts cut the output power of some companies which brought along delays in the supply chain.

We helped many new and existing customers overcome that period by putting their projects to work right on time, using the manufacturing network to its full extent.

Lead Times

The overall lead times for large projects tend to be quite long. It may seem logical to deduce that a few days variation in production lead times do not really matter.

In reality, the last phase entailing production and assembly is often hurried because of earlier setbacks.

Having only a few established partners means that your lead times depend solely on the amount of work they currently have on their table. We are always monitoring the situation of our partners and sending out the work accordingly, optimising lead times and manufacturing costs based on the customers’ requirements.

Competitive Pricing

While lead times are mostly the number one factor when looking to order one-offs in the form of, for example,  spare parts, price is something that cannot be overlooked with large orders.

To find someone with a fair price-point, you will have to get quotes from several suppliers and really tap into the market to get a good feel about the situation.

Fractory has the information regarding our partners’ pricing in the system. It includes the cost according to material and thickness as well as different processes. Data-based decision-making can significantly impact the overall cost of the project.

Manufacturing Capabilities

The task is pretty straightforward when looking to manufacture a batch of identical parts. Just get a quote from 3 or 4 suppliers and go with the best one, provided you trust their quality.

Building a large industrial machine may, however, require laser and plasma cutting, tube cutting, metal bending, welding and CNC machining. This means that you have to make a trade-off in either the price or overall time put into administrative duties.

The first option entails finding a supplier with all the necessary capabilities, which already limits the possible manufacturers. Having found them, you have to concede that most probably they can only offer competitive pricing for a few of the operations and materials, bringing the total cost of the project upwards.

The second possibility means dividing the project between suppliers. CNC machining, sheet cutting and bending and tube cutting may all go to different partners. This, in turn, raises the amount of administrative work by calling, sending emails and keeping track of the order progress in later phases.

Our engineers have already mapped out the market capabilities. We use this info to send the jobs to partners who can guarantee the necessary quality with a reasonable price.

For the admin side, you will only be left with a single point of contact – us.

The information about the order progress is visible on the platform and any questions will be handled by the account manager, eliminating the need for juggling between service providers. We also take full responsibility for handling the transportation, using our automated systems to cut the manual work.

Finding Technical Solutions

We are convinced that a manufacturing partner should use the industry know-how to aid clients with help and consultation. Our experienced engineers have worked on a variety of projects over the years, ranging from military and agricultural equipment to furniture and automotive manufacturing.

We are happy to share our insights to help with technical questions, creating a cost-effective design (from the perspective of manufacturing), choosing the right materials, etc.

Data Privacy

Intellectual property is something we take very seriously. Our customers have shared stories about drawings that have ended up in the hands of the competition.

Which is why we use encryption when sending out the drawings, stripping them from all the sensitive information.

Also, we do not make the drawings available to see for all the partners, waiting for the best price. As said before, we know the price-points and send the manufacturing files out based on that information.

A Platform for One-Off Orders or a Partner for Serial Manufacturing?

We have built Fractory with a vision to save engineers’ time and resources. Small orders (up to £5,000) are fully automated, diminishing the time requirements for submitting an order down to minutes.

Large orders still need a helping hand from our engineers. Still, the processes are partially automated and we have the experience with handling and managing these types of projects. This makes us a great partner for executing such jobs without friction.

If you are interested to see the ways we can help you with large orders, contact our sales engineers to find a suitable solution for your needs.

Currently, we are offering the following services:

• Laser cutting
• Plasma cutting
• Oxy-fuel cutting
• Waterjet cutting
• Tube cutting
• Metal bending
• CNC machining
• Welding
• Surface treatment

The post Serial Production with Fractory appeared first on Fractory.

We’ll first see how we fared with fulfilling the promises for 2019 and then head on to our goals for 2020.

What Did We Achieve in 2019?

As a company focused on growth, 2019 was even more turbulent than 2018. But in a good way, of course. We are making great strides towards accomplishing our long-term goals by reaching many of the mid-term targets along the way.

So here’s what Fractory did over the last year.

The Platform

We set 4 goals related to the development of our platform for 2019:

• Applying machine learning for more accurate pricing for complex parts
• Add automated pricing for bent parts
• Accept native CAD files for quoting
• Make past orders available for re-use and allow multiple quotes at once

Machine learning and artificial intelligence are seemingly being used everywhere at the moment. As one of our customers Andrei Danescu from BotsAndUs said, the reality is that there’s little substance behind those claims. And we now know why.

Implementing AI that actually manages to provide exact calculations and add value to our cloud manufacturing service is difficult. Therefore, we are still working on it and a full implementation will take longer than we first expected. But we’ll get there.

Automated bending quotes? Done. You can now upload your STP files for instant quotes. What really makes us stand out from our competition is that we don’t need any manufacturing drawings to go along with the STP files. We generate these ourselves, so you can save more time in the “drawing room”.

Accepting files native for programs like Solidworks, Solid Edge, etc. has moved into the future. We know that converting native files to STP takes time, so it’s still in the pipeline.

And lastly, you can now re-use past orders and initiate different quotes simultaneously. Also, saving quotes is available. This means that you can save the price offered for a certain period of time – even when our algorithms change in the meantime, you can accept the quote at a later point.

New Markets

Our goal for 2019 was to enter the UK and Germany. As you all probably know, we are half-way done with the plan.

Fractory established its first foreign office in Manchester, UK. As it was a new experience for us, we had a lot to learn along the way. And we are still learning.

But the UK market has been very welcoming and after overcoming the first hurdles, we have grown our network of local manufacturing partners from nothing to 15.

We are thrilled with how the onboarding of new customers is advancing. The UK market has shown us that even the first orders do not have to be for a single part. Our growing reputation and factor of trust are now bringing in the first large orders.

Expanding the Team

We promised to double our IT team in 2019 and did exactly so. A year ago, we had 3 IT engineers at Fractory and now we have 6.

With a growing reputation, our company sparks an interest in specialists we need for the different departments. Therefore, we were able to add a whole team of sales engineers to the UK.

In total, we now have 24 people working at Fractory. Compared to the 9 people from a year ago, this is a great leap forward, as all the newcomers are contributing to a better service.

Quintuple the Client Base

So this is what we thought was possible. And this is exactly what we did. By the end of 2019, we have a little more the quintupled our customer base.

More Than 300,000 Parts

Last year, the number of unique parts was 100,000 and this time around we reached more than 300,000 units.

We managed to make parts for all types of different industries – from factory machines to robots, cars, ships, etc. The in-house expertise is growing and the prowess shows when customers need consultation from our sales engineers.

Capital Raised

Fractory is a startup with a solution to a real-world problem. We are always aiming to improve the platform, our own internal systems, etc. to provide the best possible service to you. Accomplishing this needs a helping hand from investors.

This year, they showed their support by investing a 7-figure sum towards making our aspirations a reality. We are very proud to have the backing of this international bunch.

Prizes

Fractory’s growth didn’t go unnoticed with juries either. That resulted in some prizes at different competitions:

• British Chambers of Commerce – Best Use of Technology Award
• City of Tartu – Startup of the Year Award
• Smart Factory Expo – runner-up of the annual pitching competition

We value all those achievements but the Best Use of Tech Award stands out. It was a great honour to be named the winner in a category that included companies from different industries and backgrounds. Also, the British Chambers of Commerce boast a total of 75,000 member companies which makes it that more special.

What is Going to Happen in 2020?

We now have a bigger team that can support an even more rapid growth. So we have set higher aims for 2020 in terms of business success and platform development.

New Functions on the Platform

Lathing and milling are going to be added as services we offer. Full automation of the pricing may take time but we have the confidence and experience to take on the challenge.

You will be able to upload assemblies for pricing. Which means that our system will recognise each part in an assembly and give the prices accordingly.

Laser cutting is not limited to sheet metal only. Therefore, we are going to automate the pricing of tube laser cutting. A lot of you have requested for this option and we are currently already working on providing a solution.

But we also have a few operations to automate when it comes to sheet metal. One of them is counter-sinking. At the moment you still need manual quotes for parts with threaded holes. That won’t be the case later next year.

Some time in 2020 we will also implement a saved parts system. Every time you upload something, it is saved to your library and you can then always pick up these parts from the library when making a new order. As each company has its own standard parts, it would definitely make life easier for many of you.

You will soon have the opportunity to create company-wide accounts. Shared accounts make it easier to monitor the progress of each project and handle the payment side more conveniently.

Automated reclamation processes will make your life easier. We know, quality is of utmost importance but hiccups do happen in the manufacturing realm. Streamlining the reclamation process will ease your burden in those unfortunate instances.

New Markets

So we now have some experience under our belt when it comes to market entries. And we are going to put that experience into practice sooner rather than later. Keep your eyes open for some exciting news!

Expanding the Team

Of course we are also planning to continue adding new members to our team. In the coming year, we will double our staff numbers.

A lot of emphasis will be on sales engineers again but every department will need reinforcements when expanding the business.

Quintuple the Client base

Yes, we are keeping the same goal of a five-fold increase in the number of customers. Definitely ambitious but also doable.

Holidays

Firstly, we want to wish everyone happy and quiet holidays! We hope to see you back next year to continue this journey with us.

If you are one of those people who seeks an edge at a time the competition is resting, you can rely on us. The automated platform is online and ready for quoting. Get your metal fabrication services from us!

The post New Year’s Resolutions for 2020 appeared first on Fractory.

The Chamber Business Awards were handed out for the 16th time. Established as a way to recognise businesses for the role they play in driving the economy, the Fractory team considers this an important milestone.

A national jury was responsible for picking the stand-out businesses, and 3 more members of the GM Chamber of Commerce were chosen as the best in their category in North West.

The competition will continue nationally, with all the regional winners taking part in the last stage.

Significance of the Award

Since Fractory started offering sheet metal fabrication in the UK, the reception has been great. The customer-base has been growing rapidly with positive feedback coming from companies and individuals alike.

For Fractory, winning this award further signifies the importance of manufacturing for the British people. Being named as the company with the “Best Use of Technology” amongst companies from very different fields is just another testament to that.

Altogether, the reception shows the local people’s willingness to adopt new technology in order to find a competitive advantage and implement new efficient solutions.

We would like to thank the jury and our customers for the strong support! See you in the finals!

The post Fractory Awarded for Best Use of Tech appeared first on Fractory.

Manufacturing-as-a-Service

Manufacturing-as-a-Service is gaining ground. Traditionally, ordering manufacturing takes a lot of time and effort. Now, the old way of constant e-mailing and back-and-forth calling is being replaced by online manufacturing. With half of Fractory’s team comprised of mechanical engineers, they were well acquainted with the problems in manufacturing.

“The sheet metal industry needs simple solutions to help the transformation towards Industry 4.0. Fractory offers just that. Our clients can minimise the time spent on procurement processes without implementing new software. The ability to compare prices and go from quoting to ordering in under a minute has been a great incentive to use our service,” explained Martin Vares, the CEO of Fractory.

“While online B2B platforms have evolved in many other industries, sheet metal industry has largely been untouched. During the last year, Fractory has successfully deployed its platform in a number of countries, with a steady 80% quarterly revenue growth. We see the potential for Fractory to be established as the leading European platform in this large industrial segment,”  said Gerri Kodres, founding partner of United Angels VC.

Saving £10,000 per Engineer Annually

Bending Quote Online

Fractory can manufacture using only 3D CAD models. Losing the need for manufacturing drawings alone can save a company £10,000 per engineer annually, as around 20% of a mechanical engineer’s time usually goes towards making drawings. 

At the same time, purchasing managers are spending most of their time towards getting competing quotes from different manufacturers. Fractory’s automated platform sharply decreases the time spent on procurement processes. With hundreds of machines available, there’s always a number of pre-vetted manufacturing partners with capabilities to execute a particular job, which also helps to keep the prices competitive.

Plans for the Investment

Fractory’s objective has been revolutionising the industry from its inception. The recently-closed round is another stepping stone in this journey. The investment was led by Trind Ventures and United Angels VC with participation from Contriber Ventures, Spring Capital and existing investors Startup Wise Guys, Nordic Angel Program and others.

“We have kept our eye on Fractory since the beginning and have been impressed by the energy and speed of the founding team. These guys are solving a problem of a traditional economy and we are excited to support their growth.” said Ivar Siimar, partner at Trind Ventures.

“The funds will be used for further expansion and acceleration. Though we have been growing at a great pace, we want to do it even faster. Our sights are on opening new markets in the coming year, but the main focus is still on the recently-opened UK market. In order to keep up with the growing interest, we need to increase our UK team five-fold by the end of the year.

We hold great service standards and customer experience in the highest regard. We will double our development team in the next few months to offer more flexibility and options to our customers. While working as a mechanical engineer, I spotted some gaping holes that need fixing. We’re doing it now. At the end of the day, our goal is to make the industry better,” concluded Martin.

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What Did We Achieve in 2018?

2018 is about to end and we are happy about it. Not because it was a crappy year. Rather the opposite. This year’s progress gives us confidence to move on. We have made great strides in every aspect and here are some highlights.

The Platform

Lots of work has been done behind the scenes. Literally, because even we cannot see the developers who are in a separate room. They have contributed resources towards improving our algorithm, resulting in a more accurate pricing service.

The IT crowd made sure that you don’t have to order every material separately any more. Everything can be done in one batch.

Our homepage got a makeover. The new design is more intuitive and easier to use. And we started constantly updating our blog to share industry knowledge with you.

6 New Team Members

Fractory started with 3 founding members. Today, we have 9 people in the team. We added 3 mechanical engineers, 2 software engineers and a media specialist in 2018. Team chemistry is of great importance and we have developed a good connection in a short time-span.

More Than 100,000 Parts

You produced more than 100,000 parts with us. The ordered parts were for self-driving cars, boats, tractors, children’s playgrounds, robots, stairs etc. Our sales engineers helped with their knowledge and advised how to manufacture those things, gaining lots of insights along the way.

175 Unique Customers

You are a multinational bunch. We got orders from Estonia, Latvia, Lithuania, Finland, Sweden, Norway, Bulgaria, the Netherlands, the UK and the USA. In total, 175 companies trusted us with manufacturing their parts.

Manufacturing Partners

In 2018, we greatly expanded our manufacturing network. New partners joined from Estonia, Latvia, Lithuania, Finland, Sweden and the UK. Each has their own strong points. We outsourced the work accordingly to assure the best possible quality.

Capital Raised

People believed in our idea. A shake-up in an old industry seems inevitable. Investors from Estonia, the Netherlands, Japan, the USA, Austria, Finland and Belgium voted with money, backing us with €290K.

Prizes

Fractory’s growth didn’t go unnoticed with juries either. That resulted in some prizes at different competitions:

• EuroBLECH – best startup
• Latitude 59 – winner of the annual pitch competition
• German Innovation Awards – nomination
• EIT Raw Materials – winner of a cross-pitching event

We value all those achievements but EuroBLECH stands out. Having this kind of recognition from the world’s largest fair dedicated to sheet metal production is a source of great pride. For us, it shows that the industry has been anticipating a solution we are now offering.

Growing Revenues

Our revenue grew steadily over the course of 2018. We managed to exceed our own expectations by doubling the revenue stream quarterly.

What is Going to Happen in 2019?

Our CEO’s horoscope foresees a spiritual shift in 2019. Luckily, nobody cares. Together we have made our own plans that do not conform to the foretold destiny. Here is what you can expect.

New Functions on the Platform

A good house is built on a lasting foundation. So we are going step-by-step. First, we launched automated laser cutting pricing. What next? The calculation algorithm will be further improved using machine learning. The pricing will be done using historical data, so the computer compares your details to other parts that are alike. The final offer is based on that comparison to ensure greater accuracy.

Another function will be added. We are going to offer automated prices for bending. This is done using 3D models that are also good for laser cutting. No more need for drawings!

We are also adding new file formats. Alongside STEP files, your native CAD models and drawings will be supported.

Lastly, we will add the possibility to re-use past orders as the basis for a new one. Along this, we are going to enable you to process multiple quotes at once.

New Markets

We’ve had orders from all over the place. The need for our solution is there and we are going to ease your burden. First, we are opening the UK market and then comes Germany. We are looking for manufacturers in those and bordering countries. These manufacturing meccas can provide you with great services and having more resources nearby will further shorten the lead times.

Expanding the Team

Doubling our software development team is a priority. To achieve our goals, we need more bright minds helping to turn our ideas into reality. Continuous development is paramount to staying ahead.

Also, more sales engineers with a production background will join us. We can see how much you value their support and advice. Engineering companies come across very different projects and our engineers share their know-how to get the best result.

Quintuple the Client base

Our goal is to increase our client base five-fold. New markets open opportunities and make our solution more feasible to many of you. 

Wider Material Selection

Today, some popular materials are still asked via e-mail. We shall include many new materials, including high-strength steels, in the drop-down list for easy selection.

Holidays

Firstly, we want to wish everyone happy and quiet holidays! We hope to see you back next year to continue this journey with us.

If you are one of those people who seeks an edge at a time the competition is resting, you can rely on us. The automated platform is online and so are our partners. Order your sheet metal fabrication from us!

The post New Year’s Resolutions for 2019 appeared first on Fractory.

Speaking at the award ceremony held in Germany, Martin Vares, one of the founders, said:

“The news to have won the contest did not really surprise us. The feedback that we have received from manufacturers and engineers until now has been extremely positive as it enables them to get instant quotes and lead times so that they focus on their main business.”

The Ministry of Economic Affairs and Communications has focused the national industrial policy on the digitisation and automation of production processes and promoting exports of Estonian manufacturers.  The industrial sector accounts for nearly 70% of Estonia’s exports. The web-based sheet metal fabrication solution developed by Fractory opens up new export opportunities and sectors for Estonian manufacturers and also allows to export the innovative technology worldwide. Estonian developments are already now exported to countries such as Australia and the United States.

EuroBLECH 2018 in 100 seconds: The EuroBLECH Award 2018

The Step into Digital Reality contest encourages companies working with sheet metal to implement digital processes. The contest was held in 3 categories: Best Start-up, E-mobility and Digital Transformation.

EuroBlech is an international exhibition for the sheet metal working industry that this year celebrates its 25th anniversary. This year the exhibition showcases a wide range of intelligent technology and innovative sheet metal processing solutions. Industry digitisation is having a major influence on the development of the sheet metal working industry. This year, 1,500 exhibitors from 40 countries will participate in EuroBLECH that covers an area of 89,000 square meters.

The post We Won: Best startup! appeared first on Fractory.