Celonis co-founders Bastian Nominacher, Alexander Rinke and Martin Klenk.
LONDON – Enterprise software company Celonis said Wednesday it raised $ 1 billion in a new round of funding and valued the company at a staggering $ 11 billion.
The new investment was jointly led by Durable Capital Partners and T. Rowe Price Associates, which also included Franklin Templeton and Splunk Ventures. Celonis is now worth more than four times the $ 2.5 billion it was last privately valued at in a 2019 cash injection.
Founded in 2011 by three friends in Munich, Celonis began as a university project to advise companies on improving their IT processes.
Celonis pioneered a technology called process mining, which analyzes data from a company’s event logs to identify problems with specific processes and find ways to optimize them.
Last year the company introduced a new platform called Execution Management, which gives customers access to a dashboard with real-time data on processes and the ability to automate certain tasks.
“As businesses grow, inefficiency creeps in and doing business becomes a struggle,” said Alex Rinke, co-CEO and co-founder of Celonis, in a statement. “Employees feel it, customers feel it, and it leads to significant financial losses and environmental pollution.”
“We are excited and honored that the rise in execution management defines a new software stack that is helping customers rethink their execution,” he added. “It’s the biggest software shift since cloud computing.”
The company says it’s growing in the triple digits every year and has a client base like Dell, L’Oreal, and Pfizer. The company, with headquarters in New York and Munich, currently employs more than 1,300 people worldwide.
Not only did Celonis announce a huge financing deal, but it has also named Carlos Kirjner, former Vice President of Finance at Google, as its new Chief Financial Officer ahead of an expected IPO.
This is the latest sign of recurring revenue stream investors raving about enterprise software companies, and comes at a time when the coronavirus pandemic has accelerated digital transformation for businesses of all shapes and sizes.
A number of software companies went public in the United States last year. Romanian-founded UiPath went public on the New York Stock Exchange in April with a blockbuster debut, while cloud company Snowflake went public last September.