Fractory

Fractory operates a cloud manufacturing platform and managed metal fabrication service for engineering and manufacturing businesses. Customers upload CAD files to the platform and receive automated quotes and lead times, with the system performing design-for-manufacturing analysis and allocating work to a vetted network of manufacturing partners. Available processes include sheet metal laser cutting, tube laser cutting, plasma, flame and waterjet cutting, metal punching and bending, CNC milling and turning, welding and assembly, heat and surface treatment, metal casting and high-volume production. Materials offered include aluminium, carbon steel, stainless steel, galvanised steel and special-purpose steels such as Hardox, Strenx and Domex, with certificates available on request.

Beyond automated quoting, Fractory manages projects from quoting through to delivery. Business customers are assigned a dedicated Project Engineer and Account Manager, and an in-house Quality Assurance team oversees production; partners are vetted through audits, test orders and proof of certifications. The company describes a "Multi-Stage Connected Manufacturing" approach in which it coordinates multiple suppliers, process management and logistics for multi-process orders under a single point of contact, and re-routes production between partners if a supplier encounters problems. It also offers payment terms for eligible business accounts and frame agreements with fixed prices for long-term contracts.

The platform serves three principal use cases — project manufacturing, series manufacturing and prototyping — across sectors including automotive and transportation, industrial machinery, construction, aerospace and defence, marine, and electrical and electronics.

Founding story

Fractory was founded in 2017 and began trading on the Estonian market that year. It was started by mechanical engineer-turned-entrepreneur Martin Vares, whose own experience in the manufacturing industry led to the company's inception, together with Joosep Merelaht and Rein Torm.

Business model

Fractory acts as an intermediary between customers needing custom metal parts and a network of vetted manufacturing partners, taking responsibility for supplier selection, project management, quality assurance and delivery rather than owning production capacity. Value is described as coming from collective buying power across its customer base, engineering support, quality control, multi-supplier project management and frame agreements for long-term contracts.

Customers order fabricated metal parts through the platform, receiving automated instant quotes on uploaded CAD files or manual production quotes for larger projects; eligible business accounts can apply for payment terms. Reported turnover was nearly €15 million in 2022.

Traction

The company states it is trusted by more than 62,000 engineers. At the time of its 2021 Series A it reported having worked with more than 24,000 customers and hundreds of manufacturers and metalwork companies, delivering some 2.5 million metal parts. Turnover was reported as nearly €15 million in 2022, having at least doubled year over year, and in 2023 the company received its first single order worth more than €2 million. Headcount was reported at 64 in 2023, with the About Us page citing 50+ employees across Engineering, Sales, Supply Chain, Quality Assurance, IT and other teams.

Latest developments

In November 2023 Fractory announced a €4.8 million funding round led by Kvanted, a Finnish early-stage investment company focused on industrial technology in Northern Europe, with participation from existing backers including Superhero Capital, OTB Ventures, Trind Ventures, United Angels VC, Startup Wise Guys, Verve Ventures and angel investor Taavi Kotka. The capital is earmarked for expansion in existing markets, mainly the United Kingdom and Scandinavia, with a focus on increasing offered production capacity and volume. Leadership has since changed, with Björn Klaas serving as CEO and co-founder Martin Vares as COO.