RPA software maker, UiPath, recently revealed that it had closed a massive $568M series D round of funding.
Following the latest financing round, the company said it is currently valued at $7 billion.
Coatue Management led the new round, which also included various participants such as Sands Capital, Wellington Management, and Dragoneer Investment Group.
According to UiPath, T. Rowe Price Associates Inc. managed the accounts and funds.
The round also involved the participation of previous investors such as Madrona Venture Group, IVP, Sequoia, CapitalG, and Accel Partners.
Since raising $30 million in its Series A round of funding, UiPath’s total raised funds are nearly $1 billion to date.
According to UiPath’s Crunchbase profile, the company was established back in 2005, but it did not conduct its seed round until 2015.
UiPath said the recent round had made the company one of the most valuable artificial intelligence companies today.
In fact, it said that SenseTime hit a valuation of $4.5 billion after finalizing a $620 million funding round back in May last year.
According to UiPath, it utilizes machine learning and artificial intelligence in a bid to “automate millions of repetitive, mind-numbing tasks for business and government organizations all over the world, improving productivity, customer experience, and employee job satisfaction.”
Currently, the company has about 400,000 users spread out across 200 nations and has customers such as the US Navy, NTT Communications Corp., Nippon Life Insurance Company, McDonald’s Corp., and Duracell.
The records revealed an increment in the company’s annual recurring revenue from $8 million back in 2017 to more than $200 million at the moment.
UiPath had closed its Series C back in November when its annual recurring revenue stood at $150 million.
So why did the company conduct another fundraising so soon? UiPath, in its frequently asked questions, claimed:
“Our business growth has largely funded our operations. Looking forward, we still have aggressive plans that we believe can be best executed with additional funding, while ensuring our commitment to customer success during this unprecedented growth.”
Particularly, UiPath intends to invest in “strategic M&A,” expedite its research and development process and strategic product roadmap, and “deepen” its investments in workforce education.
UiPath’s chief executive officer and Co-founder Daniel Dines claimed that the industry is “at the tipping point.”
“Business leaders everywhere are augmenting their workforces with software robots, rapidly accelerating the digital transformation of their entire business and freeing employees to spend time on more impactful work,” he added, noting that it’s his company’s vision to have “a robot helping every person.”
UiPath also hinted that an initial public offer might be in the company’s future, claiming:
“We are practicing what it takes to be a public company today, including implementing public company caliber financial accounting, processes and controls and building the industry’s strongest management team that includes executives from HP, Microsoft, NetApp, Nutanix, and SAP.”
UiPath faces competition from other software companies like Automation Anywhere Inc., Kofax, Blue Prism Group Plc, and Pegasystems Inc.
“The industry has achieved rapid growth in such a short time, with UiPath at the head of it,” said Greg Dunham, vice president at T. Rowe Price Associates.