RPA platform ElectroNeek raises $20M
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ElectroNeek, a Robotic Process Automation (RPA) platform for managed service providers and IT teams, announced today that it has raised $ 20 million in a Series A funding round led by Baring Vostok. ElectroNeek, based in San Francisco, Calif., Which is now valued at $ 100 million, says it will invest the proceeds in product development and expanding its engineering staff.
RPA – technology that automates monotonous, repetitive tasks traditionally performed by human workers – is big business. Forrester estimates that RPA and other AI subdivisions created jobs for 40% of companies in 2019, and that a tenth of startups now have more digital employees than people. According to a McKinsey survey, at least a third of the activities in around 60% of the jobs could be automated. And in its recent Trends in Workflow Automation report, Salesforce found that 95% of IT executives prioritize workflow automation, with 70% saving more than four hours per employee per week.
ElectroNeek, an alumnus of the startup accelerators Y Combinator and Plug and Play, was founded in 2019 and offers software that helps companies automate repetitive IT processes and workloads. Managed Service Providers can use ElectroNeek to create and deploy RPA bots for customers while maintaining control over the pricing of projects for end users. You can also take care of bot development and management, and offer RPA-as-a-service subscriptions, potentially creating new revenue streams.
Image source: ElectroNeek
ElectroNeek claims to have become one of the fastest growing RPA platforms by 2021, with over 250 customers in more than 40 countries. The company recently partnered with Microsoft, Oracle and Nvidia and announced plans to expand its presence in North America, Latin America, Europe, the Middle East and India. In 2020 ElectroNeek saw sales growth of 400%.
The future of RPA lies in selling RPA bot development as a subscription service. In the past, consultants and systems integrators have developed RPA bots for their customers and collected one-time project fees, which limited their long-term interest in the RPA implementation business, ”Sergey Yudovskiy told VentureBeat via email. “But now our presence with managed service providers shows that they are much more effective with their customers if they sell the RPA bot development as a subscription and build their own SaaS business on the RPA platform. We have aligned our architecture and business model in such a way that managed service providers can generate recurring income and change the rules of the game in the automation industry. “
Competition in RPA
ElectroNeek has a number of competitors in a global intelligent process automation market that is valued at $ 15.8 billion by 2025, according to KBV Research. Automation Anywhere recently secured a $ 290 million investment from SoftBank valued at $ 6.8 billion. In months, Blue Prism raised over $ 120 million, Kryon $ 40 million, and FortressIQ raised $ 30 million. Technology giants have also ventured into the field, including Microsoft, which acquired RPA startup Softomotive, and IBM, which acquired WDG Automation. And in the past few months, legacy vendors like WorkFusion and Redwood Software have raised hundreds of millions of dollars for their automation products.
However, the number of touches in process automation in the industry continues to increase. A Deloitte report predicts that the technology will achieve “near universal adoption” within five years. According to the same report, 78% of companies that have already implemented RPA – with an average payback time of 9 to 12 months – expect to “significantly” increase their investment in technology over the next three years. And Gartner estimates companies can reduce their operating costs by 30% by 2024 by combining automation technologies like RPA with redesigned operations.
“More than 90% of the time, work between desktop and browser environments is automated, especially uploading or downloading data from Software-as-a-Service products, including to and from popular web-based accounting software from Intuit, Sage and Xero . This includes data migration for financial, customer data or less common use cases such as the export of banking rules, ”said Yudovskiy. “One of our partners developed and implemented ElectroNeek bots for one of their e-commerce clothing customers. Using ElectroNeek automation products, they developed a solution that accelerated the delisting process for customers by 14 man-hours per week. This use case is a great example of how small to medium-sized customers can leverage RPA and get a significant return on investment if the technology was previously viewed as business-centric and costly. “
In addition to Baring Vostok, AICPA and the existing investors, Dragon Capital, I2BF, AngelsDesk, YellowRockets.vc and Gokul Rajaram participated in ElectroNeek’s latest financing round. This brings the company’s total to nearly $ 24 million.
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