Celonis Raises $1 Billion Series D Funding

Celonis Secures $1 Billion in Series D Funding

Celonis, a leading process mining software company, has announced a substantial $1 billion Series D investment. This funding round values the company at an impressive $11 billion, a significant increase from its $2.5 billion valuation in 2019.

The investment was co-led by Durable Capital Partners LP and T. Rowe Price Associates. New investors including Franklin Templeton and Splunk Ventures also participated, alongside contributions from existing investors like Arena Holdings and other unnamed parties.

New CFO Appointment

Concurrent with the funding announcement, Celonis appointed Carlos Kirjner as its new Chief Financial Officer (CFO). Kirjner brings extensive financial experience, having previously held a leadership role in finance for ads and key product areas at Google.

Potential for an IPO

The involvement of prominent institutional investors such as T. Rowe Price and Franklin Templeton suggests this may be Celonis’s final private funding round before a potential initial public offering (IPO).

When questioned about an IPO, Celonis CEO and co-founder Alexander Rinke indicated a positive outlook. He stated the company is optimistic about its growth prospects as both a private and, potentially, a public entity.

Rinke also highlighted the company’s access to backers capable of investing in both public and private markets.

Expanding Beyond Process Mining

Rinke emphasized the significant market potential extending beyond the company’s origins in process mining. He views process mining as a crucial entry point for developing and improving organizational processes.

The broader market for building and optimizing processes represents a considerably larger opportunity for Celonis.

Position in the Automation Landscape

Celonis’s software occupies a foundational position within the process automation ecosystem. This ecosystem encompasses robotic process automation, no-code workflows, and other tools designed to enhance automation within businesses.

The company may explore developing additional components of this ecosystem or utilize the new capital to acquire talent and functionality, a possibility acknowledged by Rinke.

Revolutionizing Process Analysis

Initially, Celonis focused on mapping organizational workflows, a task traditionally requiring expensive consultants and lengthy on-site observation.

By automating this process mapping, Celonis enables companies to identify inefficiencies and pinpoint areas suitable for automation more efficiently. This technological acceleration reduces costs and fosters innovation.

Strategic Partnership with IBM

A recent significant agreement with IBM involves training 10,000 IBM consultants globally on Celonis’s tools. This collaboration leverages IBM’s extensive reach to amplify the impact of Celonis, which currently employs around 1,000 people and anticipates reaching 2,000 by year-end.

This partnership likely contributed to investor confidence and the substantial capital injection.