UiPath is the latest cloud software provider to ride pandemic-related growth to a monster valuation.
The company, whose software automates back-office processes and time-consuming tasks for its clients, said on Monday that it raised $225 million at a valuation of $10.2 billion. The round was led by Alkeon Capital Management, a tech-focused hedge fund that's become one of the industry's best performers this year by betting big on e-commerce retailers and work-from-home plays.
UiPath describes its technology as "robotic process automation." The company said its annual recurring revenue has increased to $400 million, up from about $100 million two years ago, with a big boost from large corporations that have been forced to quickly adapt to remote work. Its valuation has climbed almost 50% since August, when it was valued at $7 billion.
"COVID-19 has heightened the critical need of automation to address challenges and create value in days and weeks, not months and years," UiPath CEO Daniel Dines, who co-founded the company in 2005, said in a press release. "We are committed to working harder to help our customers evolve, transform, and succeed fast in the new normal."
A new entry on CNBC's Disruptor 50 list this year, UiPath is now among the most valuable private venture-backed companies in the U.S. Snowflake, a developer of cloud-based technology for storing and analyzing data, was valued at $12.4 billion in a financing round in February led by Salesforce. In another Salesforce-led round, security vendor Tanium was valued at $9 billion last month.
On the public markets, a number of cloud-computing stocks are soaring. Zoom, Okta, DocuSign, Datadog and Twilio are among the companies that hit record highs last week. Zoom has surged more than 300% this year, and Twilio is up about 145%.
Growth in the market is bringing heightened competition. Microsoft acquired RPA developer Softomotive in May, and IBM announced last week that it's acquiring Brazilian software-bot developer WDG Automation.
Dines said UiPath will use the money to invest more in artificial intelligence and expand its cloud offerings.
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