Digital manufacturing specialist Fractory has secured additional funding from the SmartCap Green Fund, an Estonian Government-backed initiative, to support its expansion across the UK and Scandinavia. The investment, whose exact amount remains undisclosed, will fuel Fractory’s ongoing efforts to enhance efficiency and sustainability in the metal industry.
This round of funding builds on a previous investment led by Kvanted and is aimed at scaling Fractory’s operations in existing markets while setting the stage for a larger Series B funding round. Part of the investment will be used to expand Fractory’s teams in the UK and Scandinavia, with the company planning to recruit over a dozen new engineering and commercial roles to meet increasing business demands across Europe. This will bring the company’s international workforce to more than 90 employees.
Additionally, the funding will be used to improve the visibility of suppliers and integrate environmental impact tracking into Fractory’s platform. The goal is to make data on the environmental effects of manufacturing and transportation more accessible. “We already have the data, we just need to make it easy to access,” said Fractory CEO Martin Vares.
Vares emphasized that sustainability is at the core of Fractory’s mission, aligning with their goal of increasing efficiency. “Efficiency for us means optimizing the existing capacity within the market, and sustainability is a natural benefit,” he said. By leveraging the data they already process for customer orders, Fractory aims to help businesses meet upcoming EU climate regulations by accurately tracking the environmental footprint of their supply chains.
Sille Pettai, fund manager at SmartCap, highlighted the impact of Fractory’s platform in improving manufacturing efficiency. “Fractory enhances machine utilization rates across their supplier network by up to 80%, while reducing material waste,” she said. “By investing in Fractory, we support a promising player in the digital manufacturing sector, driving efficiency and sustainability.”
Fractory’s cloud-based platform provides scalable manufacturing services, offering instant access to processes such as laser cutting, CNC machining, and tube cutting. The company’s network of global manufacturing partners is designed to improve accessibility, efficiency, and quality in the metal fabrication industry.
The SmartCap Green Fund, part of the EU’s NextGenerationEU initiative, focuses on investments in green tech companies across various sectors, including energy, transport, and materials. Through this funding, Fractory aims to continue revolutionizing production processes and supply chain dynamics, further cementing its position as a leader in digital manufacturing.