UiPath Raises $750M at $35B Valuation - Robotic Process Automation

UiPath, a prominent player in the rapidly expanding field of robotic process automation (RPA), revealed on Monday the completion of a $750 million Series F funding round, achieving a remarkable post-money valuation of $35 billion.

Alkeon Capital and Coatue jointly spearheaded the investment, with further contributions from existing investors including Altimeter Capital, Dragoneer, IVP, Sequoia, Tiger Global, and investment groups managed by T. Rowe Price Associates, Inc. According to Crunchbase, this latest financing increases the total capital raised by the New York-based firm to almost $2 billion since its establishment.

Founded in 2005, UiPath did not begin securing institutional funding until 2015, as noted by Crunchbase. CNBC reported in December that the company generated approximately $360 million in annual revenue and serves a customer base exceeding 6,300, including major organizations like Amazon, Bank of America, and Verizon.

UiPath defines its core purpose as “freeing human potential by enabling the Fully Automated Enterprise™ and empowering the workforce through automation.” The company’s Automation Platform is designed “to redefine the nature of work” by providing businesses with the tools to develop and implement automation solutions across various departments.

Leveraging artificial intelligence (AI) and machine learning technologies, the company strives “to automate countless routine and tedious tasks for businesses and governmental entities worldwide, thereby enhancing productivity, improving customer interactions, and boosting employee satisfaction.” The ultimate aim is to allow employees to dedicate their focus to more challenging and strategic responsibilities. Key competitors in the market include Microsoft Power Automate, Blue Prism, and Automation Anywhere, with SAP also recently entering this sector.

The company has experienced substantial growth. When I previously reported on its $568 million Series D round in April 2019, UiPath had 400,000 users across 200 countries. The company indicated at that time that its annual recurring revenue (ARR) had increased from $8 million in April 2017 to over $200 million. UiPath also stated it had expanded its workforce by a factor of 16 over a two-year period, reaching more than 2,500 employees, and suggested it was evaluating a potential IPO.

Consistent with its earlier statements, UiPath submitted a preliminary registration statement to the Securities and Exchange Commission in December for an initial public offering. This makes the recent substantial funding round particularly noteworthy.

To some observers, UiPath’s potential public debut could mirror the success of the Snowflake IPO in 2021. Affirm, a provider of alternative payment solutions, followed a comparable strategy recently – securing $500 million in funding before submitting its IPO filing just weeks later.

UiPath has chosen not to provide additional commentary regarding its latest funding round beyond the information contained in a press release.