Last year, Gartner found that unmanned Process Automation (RPA) is the fastest growing group in enterprise software. So maybe it shouldn’t come as a surprise that UIPath, a leading startup in the space, announced a $225 million Series E now within a $10.2 billion evaluation.
Alkeon Capital led the round with assistance from Accel, Coatue, Dragoneer, IVP, Madrona Venture Group, Sequoia Capital, Tencent, Tiger Global, Wellington and T. Rowe Price Associates, Inc.. Now’s investment brings the total. 225 billion, based on Crunchbase data.
It is worth noting that the existence of institutional investors such as Wellington is often a signal that a corporation could be thinking about going public at some point. CFO Ashim Gupta did not shy stating that CEO Daniel Dines and co-founder has discussed the notion in recent months and what it might take to become a public company.
“We’re evaluating the marketplace conditions and I would not state this to be obscure, but we haven’t chosen a day that states on this day we are going public. We’re really in the mindset that says we should be ready while the market is ready, and I would not be surprised if that is at the next 12-18 months,” he explained.
One of the facets that is bringing so much investor interest is its expansion rate, which Gupta states is continuing on an upward trajectory, even during the pandemic as companies search for ways to market. In fact, he reports that recurring revenue has grown from $100 million to $400 million over the last 24 months.
RPA helps firms add a level of automation to manual heritage procedures, bringing in modernization without having to throw out existing systems. This approach appeals to a lot of companies not inclined to rip and replace to find some of the benefits of transformation. As firms look for ways to automate the pandemic has just served to push this kind technology.
The organization raised some eyebrows at the fall as it announced that it was laying off 400 employees just 6 months after increasing $568 million on a $7 billion evaluation , however Gupta explained that the layoffs represented a sort of reset for the firm after it had grown rapidly from the prior two years.
“From 2017 into 2019, we invested in a lot of different areas. I think in October, the way we thought about it was, we really started as we became more confident in our approach, taking a pause, and we reassessed regions people layoff decisions were driven by that in October, and that we wanted to cut back .
As for why the startup requires all that money, Gupta says in a growing market, it is spending to grab as much market share as it can and that takes a lot of investment. Plus it can’t hurt to have tons of cash in the bank as a hedge against economic instability during the pandemic. Gupta notes that UIPath could be taking a look at strategic acquisitions in the months to fill in holes in the product roadmap rapidly.
While the company does not expect to experience the type of expansion it went through 2017 and 2018, it is going to continue to employ, and Gupta says the leadership team is dedicated to building a diverse team in any way levels of the organization. “We want to have the very best people, but we really do believe that having the best people and the best team usually means that diversity needs to be part of this,” he said.
The business was established in 2005 in Bucharest outsourcing automation libraries and software. In 2015, it began the pivot to RPA and has been growing in leaps and bounds ever since. When we spoke to this startup in September 2018 approximately its own $ 225 million Series C investment (which finally ballooned to $265 million), it had 1800 clients. Today it has 7000 and growing.