Automation Anywhere, one for the best-funded RPA providers with more than $1 billion money raised up to now, went your debt path recently, securing a $200 million loan from Silicon Valley Bank, SVB Capital and Hercules Capital.
Debt raises aren’t always a poor thing — they’re a good device, especially for businesses with a high yearly recurring income — nevertheless the magnitude and timing for the Automation Anywhere raise suggests it had been more from requisite than option.
“This brand new funding will give you functional money for the following years as Automation Anywhere continues to advance its cloud-native automation platform,” CEO Mihir Shukla told TechCrunch via e-mail. “We’re utilizing AI and smart automation to style technology that’s available to everybody else — a myriad of company leaders, supervisors and resident designers.”
While Shukla insists Automation Anywhere’s company is robust, having a client base of around 5,000 and “over 50per cent income development,” the RPA market has very long faced headwinds as investors increasingly express doubt your technology, which automates repeated pc software tasks at enterprise scale, can deliver on its numerous claims.
PitchBook records that stocks of UiPath — Automation Anywhere’s primary rival, which went general public in April 2021 — plummeted 71per cent in 2010. At the same time, another big player, Blue Prism, final September consented to offer it self to Vista Equity Partners for £1.095 billion (about $1.5 billion).
Gartner predicts that even though the RPA market will achieve $2.9 billion by the start of 2023, the development price will end considerably less than it had been in 2021, once the part expanded by 30.9per cent set alongside the 12 months prior. Presuming the $2.9 billion figure involves pass, it’d translate to 19.5per cent development involving the years 2021 and 2022.