UiPath raised another $225 million in venture funding, the company said Monday, boosting the automation startup’s overall valuation to $10.2 billion.
CEO Daniel Dines said the monster funding bolsters UiPath’s leadership in one of the hottest sectors in tech as he reaffirmed the startup’s intention to go public in 2021.
“We have continued to see positive momentum so we are in pretty good shape,” he told Business Insider. “I can say that it might accelerate our plan for an IPO early next year.”
The New York-based startup said the Series E round was led by Alkeon Capital Management with the participation of existing investors, including Sequoia Capital and Accel. UiPath has now raised more than $1.2 billion in funding from venture capital investors, led by Sequoia, Accel and CapitalG (formerly Google Capital).
The latest funding round underscores UiPath’s strong position in robotic process automation, or RPA, the fast-growing technology that helps businesses automate common and routine tasks.
Dines said UiPath will use the new funds for expansion and to prepare for market uncertainties, especially in the wake of the coronavirus crisis.
“We’re looking at M&A. We’re looking at increasing our engineering efforts,” he told Business Insider. “Also, it acts a bit like a cushion if something really bad will happen like the economy going into a stall”
Abhi Arun, general partner at Alkeon said in a statement that RPA is “fundamentally changing the way organizations operate,” noting that UiPath offers “the most advanced and disruptive automation platforms of the modern enterprise.”
The funding news comes seven months after a turbulent week when UiPath announced that it was cutting 400 jobs and that Marie Myers, its well-regarded chief financial officer, had suddenly left the company. A 2019 internal presentation reviewed by Business Insider also showed that the company was burning cash faster than expected and it was falling short of its revenue targets.
But UiPath on Monday said its annual recurring revenue had grown from $100 million when they last disclosed that figure in July 2018 to $400 million this year, making it one of the fastest growing enterprise software companies in the industry.
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