Fractory

About Fractory

Fractory, founded in Estonia in 2017, operates as a cloud-based manufacturing platform designed to streamline the metal fabrication procurement process for engineering companies. The company was established by Martin Vares, Joosep Merelaht, and Rein Torm. Vares, who now serves as COO after seven years as CEO, has a background as a mechanical engineer which provided the initial inspiration for the company. Rein Torm, the Chief Operating Officer, began his career as a software engineer, initially focusing on building Fractory's product. Joosep Merelaht leverages his experience in sales and supply chain to direct Nordic sales. In April 2025, Bjoern Klaas, a veteran with 25 years in the manufacturing industry, including seven years as Managing Director at Protolabs Europe, was appointed as the new CEO.

The firm's business model centers on a transaction-based, two-sided marketplace that connects customers with a network of over 50 vetted manufacturing partners. Fractory generates revenue by earning a commission on each order and by offering value-added services such as project management, quality assurance, logistics support, and advanced analytics. This model allows the company to address the issue of idle manufacturing equipment by aggregating demand, which in turn provides competitive pricing and mitigates supply chain disruption risks for its clients. The company serves a diverse range of industries, including marine, industrial automation, automotive, aerospace, defence, and construction, with customers ranging from sole traders to large multinational corporations.

Fractory's core service is an on-demand manufacturing platform that provides instant quotes and manufacturability feedback upon the upload of CAD files. The platform's algorithm analyzes the designs and selects the most suitable production partner based on factors like price, location, materials, and specific manufacturing methods required. The service portfolio includes a comprehensive range of metal fabrication processes such as laser, plasma, and flame cutting, CNC machining, welding, and various surface treatments. For business customers, Fractory assigns a dedicated Project Engineer to provide support, from design-for-manufacturing advice to project execution, ensuring a single point of contact throughout the production cycle. A dedicated quality assurance team monitors production and inspects orders to maintain high standards.

Since its inception, Fractory has achieved significant milestones, including expanding its headquarters to Manchester, UK, in 2019 and later opening an office in Chicago to enter the US market. The company has raised a total of $14.3 million over several funding rounds from investors such as OTB Ventures, Startup Wise Guys, and Kvanted. A notable achievement was securing its first order exceeding €2 million in 2023, the same year its turnover reached nearly €15 million.