Includes a $400 Million Series D Extension and a Historic $600 Million Credit Facility
Investment Based on Celonis’ Unique Position to Drive Material Customer Value in Any Economic Climate
Celonis, the global leader in execution management, today announced it has secured an additional $1 billion in funds to accelerate its unique position to help customers thrive in challenging economic environments.
This $1 billion in liquidity is anchored by a $400 million equity raise at a post-money valuation of nearly $13 billion. In addition, Celonis expanded its revolving credit facility to obtain access to as much as $600 million with a syndicate of leading global banks.
Celonis is executing another record year of strong growth with more than 2,500 enterprise deployments worldwide. The $1 billion of new funds will enhance Celonis’ already impressive capital position. Celonis will use these additional funds to invest in product innovation, drive adoption with Global 2000 customers, expand market potential with acquisition investments and deepen penetration with ecosystem partners.
The $400 million Series D extension is led by the Qatar Investment Authority (QIA) and includes new blue-chip investors Activant Capital, a fund advised by Neuberger Berman, Alta Park Capital and Commonfund Capital. Existing investors including Arena Holdings, funds and accounts advised by T. Rowe Price Associates, Inc., Franklin Templeton, Durable Capital Partners LP, TCV, 83North, Accel Partners and Sator Grove also joined the round extension.
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The Celonis five-year $500 million line of credit is expandable to $600 million and is the largest syndicated bank recurring revenue revolving credit facility of its kind. This debt facility was led by KeyBanc Capital Markets, with Goldman Sachs, HSBC Ventures, J.P. Morgan, Morgan Stanley Senior Funding, Inc., Citibank and Deutsche Bank acting as joint lead arrangers. Lenders in the syndicate also included RBC Capital Markets, Silicon Valley Bank, SMBC, Citizens, MUFG and Bank of America.
“Since the first days of Celonis, we have built a company that is operating on sound fundamentals, immutable customer value and the kind of resiliency that performs at the highest levels in any economic environment,” said Bastian Nominacher, co-CEO and co-founder of Celonis. “These fundamentals are what put Celonis in such a unique position to lean into the wind, while others are stepping back. With an additional $1 billion in liquidity, Celonis will have maximum flexibility to aggressively innovate, capitalize on new market opportunities and extend our market leadership.”
“There is a ‘behind-the-scenes secret’ that Celonis is equally effective in driving top- and bottom- line value in both booming and challenging economies,” said Alex Rinke, co-CEO and co-founder of Celonis. “We have never experienced more urgency from customers to use Celonis to hunt down and fix the kind of process problems that can yield tens to hundreds of millions in cash and time savings.”
“Celonis is well aligned with QIA’s strategic focus on innovative, best-in-class companies that are shaping the global economy of the future,” said Mansoor Al-Mahmoud, CEO of QIA. “Celonis is providing clear added value for its customers by enhancing their operational efficiency and driving their performance. QIA looks forward to a long-term and productive relationship.”
“This historic credit facility will provide Celonis with ample flexibility to continue to grow its business and deliver exceptional value to its customers,” said Patrick Kratus, managing director and head of KeyBanc Capital Markets Technology Investment & Corporate Banking. “Celonis is one of the rare gems in the enterprise technology industry whose value shines brighter in challenging economic markets, where every dollar counts and efficiency is coveted.”
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Previous Funding Rounds
In June 2021, Celonis announced its $1 billion Series D round at a valuation of $11 billion. The Series D followed the Series C financing round of $290 million in November 2019, a Series B of $50 million in June 2018, and a Series A of $27.5 million in June 2016.
Backgrounder: The Hidden Opportunity That Launched the Celonis Rocketship
In 2011, Alexander Rinke, Bastian Nominacher and Martin Klenk discovered a massive problem in the way businesses are executing their core business processes. This ah-ha moment happened when the three founders realized that the primary problem in business execution is not fixing the process problems that you know you have, it’s finding and fixing the hidden process execution problems that you don’t know you have.
A 2021 benchmarking research report from Celonis illustrates many common process problems discovered by process mining. The research revealed the impact of these issues on average for a $5 billion enterprise company:
- 73% of invoices require manual intervention to process, amounting to $41 million in additional operating costs.
- 56% of customer orders require manual intervention to fulfill, amounting to $64 million in unnecessary expenditure.
- 54% of supplier deliveries are delayed, amounting to $396 million in costs.
- 1.5% of invoices are paid twice, amounting to an average $172 million in wasted capital.
Over time these types of problems add up to millions and even billions in cost-savings opportunities for even the best-run businesses. These hidden process inefficiencies exist in literally every department, in every business, and in every industry. And due to the complexity and rigidity of the underlying ERP, SCM, and CRM systems, these problems are extremely difficult and sometimes impossible to find using traditional approaches.
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In response to this problem, Celonis pioneered process mining and its execution management system to modernize process optimization. The Celonis system uses data, intelligence and automated actions to find and fix process problems hiding inside of enterprise systems. Companies that use Celonis can shrink the time it takes to find a process problem from years to hours. And, once discovered, Celonis helps customers automatically fix process problems without having to touch the underlying ERP, SCM or CRM system.
“Celonis helps Avnet effectively manage supplier price increases without a negative impact on profitability,” said Stefan Maurer, vice president enterprise effectiveness at Avnet EMEA. “Avnet gets ‘almost daily’ price increases from suppliers and Celonis provides insight into potential margin loss and triggers alerts to account managers to make pricing adjustments — an incredibly important consideration in today’s turbulent, inflationary environment.”
Celonis momentum has also created a huge shift in the entire process ecosystem. Celonis has built strategic partnerships with more than 250 consulting and technology partners including IBM, Accenture, PWC, KPMG and ServiceNow. These companies are using Celonis both internally and embedded within their own service and technology offerings.
The Celonis for Consulting program launched in April 2021 and has enlisted more than 10,000 consultants and 2,000 consulting firms and created more than 2,000 Celonis projects and continues to expand. Additionally, there are 600+ academic partners and over 100,000 certified Celonis practitioners graduating from the Celonis Academic Alliance program.
Celonis has also expanded its capabilities and market impact from a number of strategic acquisitions including Integromat (now Make), Lenses.io, and Process Analytics Factory.
