Celonis co-founders Bastian Nominacher, Alexander Rinke and Martin Klenk.
LONDON – Business software firm Celonis said Wednesday it had raised $ 1 billion in a new round of funding, valuing the company at $ 11 billion.
The new investment was co-led by Durable Capital Partners and T. Rowe Price Associates, with participation from Franklin Templeton and Splunk Ventures. Celonis is now worth more than four times the $ 2.5 billion that was last privately valued in a 2019 cash injection.
Founded in 2011 by three friends in Munich, Germany, Celonis started life 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 certain processes and discover ways to simplify them.
Last year, the company launched a new platform called “execution management,” which gives customers access to a dashboard that displays real-time data on processes and the ability to automate certain tasks.
“As companies grow, inefficiency creeps in and business execution becomes a struggle,” said Alex Rinke, Celonis co-CEO and co-founder, in a statement. “Employees feel it, customers feel it and it generates significant economic losses and an environmental impact.”
“We are delighted and honored that the execution management boom is defining a new software stack that helps clients reimagine the way they execute,” he added. “It’s the biggest change in software since cloud computing.”
The company says it is growing in triple digits every year, with a clientele such as Dell, L’Oreal and Pfizer. The New York and Munich-based firm now has more than 1,300 employees worldwide.
In addition to announcing a major financing deal, Celonis said it had appointed Carlos Kirjner, Google’s former vice president of finance, as its new CFO ahead of an early initial public offering.
It’s the latest sign of how investors are excited about business software companies with recurring revenue streams, and it comes at a time when the coronavirus pandemic has accelerated digital change for companies of all shapes and sizes.
A lot of software companies have gone public in the US over the past year. Romania-founded UiPath went public in a highly successful debut on the New York Stock Exchange in April, while cloud company Snowflake was listed last September.