Automation Anywhere, which supplies customers with armies of software robots to take over manual tasks such as insurance claims processing, announced today it raised $250 million in a first funding round that set its post-money valuation at a cost of$1.8 billion.
The San Jose, CA-based company, begun in the year 2003 by four co-founders who bootstrapped its funding, has built a customer base of 1,100 firms which includes Google, GM, Siemens, Cisco Systems, LinkedIn, Comcast, and Juniper Networks.
CEO and co-founder Mihir Shukla says Automation Anywhere started generating revenue early on, and has racked up profits in the past, but it raised the big Series A round now to invest heavily in global expansion.
“We are at an inflection point,” Shukla says.
The fundraising round was led by New Enterprise Associates (NEA) and Goldman Sachs Growth Equity, joined by General Atlantic and World Innovation Lab (WiL).
Using bots, banks are speeding up mortgage application processing, Shukla says, shrinking the nail-biting wait for applicants from 30 days to 15 or even five days, he says. The “next-day mortgage” is feasible, he says.
“The way it’s playing out is exactly the opposite of the way people feared,” Shukla says.
Automation Anywhere, is having an employee base of more than 700, and has offices in Boston, Dallas, and New York, as well as global offices in London, Mumbai, Melbourne, Japan, and other locations. It plans to draw in new customers in existing territories and spread out to others.
Shukla says Automation Anywhere’s products have been adopted in a broad range of industries, including banking, financial services, insurance, healthcare, manufacturing, technology, and telecommunications. Improvements can come quickly in these industries, and as word spreads more customers get interested, he says. But the company is also serving customers involved in medical research projects, such as evaluating thousands of drug candidates to find the best ones. Signs of improvements due to bot support take longer to surface in life sciences research, he says, so the adoption curve there can be slower.
Automation Anywhere is a large player competing in a market dubbed Robotic Process Automation. According to a Global Market Insights report cited by the company, that market is on track to reach more than $5 billion by the year 2024.
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