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A second funding round raised $1 billion for Celonis. The company discovered “process mining” for analyzing corporate data to identify areas of weaknesses.
On Wednesday, Celonis announced that $1 billion had been injected in the second funding round. Following the development, the company’s valuation grew to a staggering $11 billion. The second funding was dominated by three firms including Rowe Price, Splunk Ventures and Durable Capital Partners. During the last cash injection, done in 2019, the valuation of Celonis was at $2.5 billion. Celonis says that besides the annual triple-digit growth, the clientele base has grown both in size and quality and can only be likened to companies like Pfizer and Dell.
Currently, the Munich and New York-based office has a staff of more than 1300. In a statement, the company’s co-director, Alex Rinke noted that inefficiencies start creeping in as companies grow, making the running of businesses a struggle. Additionally, he said that all business stakeholders including customers and employees start feeling the heat, which could cause negative environmental impacts and even unimaginable financial losses in extreme cases.
Celonis and Its Growing Valuation
Celonis was founded in Munich’ Germany. Three friends came together in 2011 to turn their college project into a successful business outfit. From its inception, Celonis has been a consultancy that majors in improving the IT sector. The company pioneered process mining, a technology process that evaluates and analyses a company’s event logs to identify areas of weakness and recommend the perfect solution for each problematic process. In 2020, Celonis launched the execution management platform, which allows users to access real-time data showing a company’s processes. Additionally, certain tasks can be automated with this platform. One of the three pioneers, Alex Rinke said that they are thrilled by the way things are progressing. He noted that executive management is revolutionizing the way customers execute their processes.
Apart from the funding deal, Celonis is bringing Carlos Kirjner, former finance director at Google, on board. Carlos becomes the new chief financial officer (CFO), just before a much-awaited IPO. This latest development is a sign that investors are becoming more interested in the enterprise software business. A couple of software developing firms have been publicly listed over the past year in the US The sudden interest can partly be attributed to the fact that the coronavirus pandemic has fuelled a digital shift to all businesses.
According to a Spark Matrix report, the future of process mining looks bright. The data indicates that process mining is expected to grow at an annual rate of over 75% in the next three years to 2025, when the expected valuation will be $7.1 billion.