UKRAINE – 2021/04/23: In this photo illustration, a software company’s UiPath logo can be seen on one … [+]
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Despite a troubled IPO market for growth technology companies, UiPath was able to land a successful offer. The company raised $ 1.3 billion and its stocks have since posted a 29% gain. The market capitalization is around $ 37 billion.
“UiPath has been leading the Robotic Process Automation (RPA) industry with its public offering,” said Muddu Sudhakar, CEO and founder of Aisera. “Everyone is a winner: vendors, the industry, and users.”
However, UiPath’s trip to IPO was a shame. Founder and CEO, Daniel Dines, spent about ten years strengthening his fledgling organization. The company almost failed.
But in 2015, Dines made some big bets on his company’s technology. This included computer vision, API automation, and low-code / no-code workflow functions.
The result was that growth exploded. Within a year, the customer base increased from ten to over 100.
“It was fortunate to have the most advanced automation / RPA platform out there at the right time, when it really took off,” said Rich Wong, venture capitalist at Accel. He and his team made a $ 30 million Series A investment in UiPath in early 2017. Wong is also a member of the board of directors.
To date, UiPath has over 7,900 customers and its Annual Recurring Revenue (ARR) is $ 580 million, up 65% year over year. 1,000+ customers have an ARR of over $ 100,000.
Then what are the most important success factors for this growth? Let’s look at this:
technology: A common misconception about UiPath is that it is a cloud company. However, the reality is that the technology is Windows software.
This may seem unconventional – almost a retro approach. But Dines was smart about focusing on customer needs first, not the technology to be used. With Windows software so prevalent in corporate and government environments, UiPath’s system was faster, smoother, and more integrated.
Community: UiPath has created a free edition that speeds up adoption. Keep in mind that there were over 250,000 downloads in the first year of launch.
The company also developed an online forum and academy to help with support and training.
“This combination was unique at the time and people flocked to UiPath,” said Nandan Mullakara, the founder of Bot Nirvana. “This created a unique flywheel that is still strong today and the results of which are visible to everyone.”
frame: Automation has to be ubiquitous in a company to get a real ROI (Return On Investment). In the case of Autodesk, for example, the company used UiPath to automate more than 100 processes.
“UiPath takes a holistic view of our needs,” said Prakash Kota, Autodesk’s chief information officer. “Automation is not just about providing a one-off solution, but rather about looking at the entire life cycle of business processes. UiPath understood this early on. We’re also part of the UiPath Product Advisory Board, and some of the requirements we put in the testing area are now built into the product. “
Go big early: UiPath was originally based in Romania. Since the market was small, the company had no choice but to expand internationally. However, this became a great benefit.
“I think Daniel and the early team are incredibly grateful for the aggressiveness of placing a bet and tracking customers and the market on a global basis rather than just taking one country at a time,” said Wong.
Tom (@ttaulli) is a Startups Consultant / Board Member and author of Artificial Intelligence Fundamentals: A Non-Technical Introduction, The Robot Process Automation Guide: A Guide to Implementing RPA Systems and Implementing AI Systems: Transform Your Business in 6 steps. He has also developed various online courses, for example for the programming languages COBOL and Python.