UiPath, a startup that works in the growing area of RPA, or robotic process automation — where AI-based software is used to help businesses run repetitive or mundane back-office tasks, to free up humans to tackle more sophisticated work — has raised money for the third time this year. The company is today announcing that it has closed out its Series C at $265 million — $40 million higher than the amount it said it was aiming for two months ago.
The new total includes new investors putting in an additional $35 million — namely, IVP, Madrona Venture Group and Meritech Capital — and $5 million in secondary sales for employees to give them liquidity. In both cases, the company has confirmed to me that the transactions were done at the same valuation as the rest of the Series C, at $3 billion. The Series C is still led by CapitalG and Sequoia Capital as before.
For some context, earlier this year, the company also raised a Series B of $153 million at a $1.1 billion valuation.
UiPath’s strong valuation hike and the rapid pace of its funding come at a time when both the company and its rivals are all growing quickly, as enterprises rush to capitalise on the rise of artificial intelligence in the workplace. In the case of RPA, the promise is that it will help bring down the cost of doing business and improve organizations’ efficiency. UiPath’s mantra is to provide “one robot for every person,” essentially doubling a company’s workforce without the need to hire more people.
UiPath says that its current annual run rate is now $150 million, up from a $100 million ARR figure it put out just two months ago, with customers now numbering at 2,100 and including the US Army, Defense Logistics Agency, GSA, IRS, NASA, Navy, and the Department of Veterans Affairs. One source at the company tells me that it’s getting approached “almost daily” for more funding at the moment.
At the same time, the competitive landscape is most definitely heating up. We’ve heard that Automation Anywhere, which also just raised money — $250 million — earlier this year, may also be looking to raise more (we’re looking into it). And just earlier this week, we reported that another RPA player, Kofax, acquired a division of Nuance for $400 million to ramp up its image processing business.
“I am honored to have IVP, Madrona Venture Group and Meritech Capital as new investors in UiPath. Their leadership and guidance will no doubt help us continue to define and lead the Automation First era for customers everywhere. UiPath has had many funding options and I believe we have selected the investors that align best with our culture and beliefs. I am humbled as the syndicate of unquestionably top-tier venture capital firms who believe in UiPath and support our future,” said UiPath CEO and co- founder Daniel Dines said in a statement. “Additionally, it is a core UiPath principle to share the success of the company in a meaningful way with our hard-working and long-time employees and we were excited to be able to extend the opportunity, at their personal choice, to realize partial liquidity in this round.”