Celonis Secures $1 Billion to Help Customers Fight Economic and Supply Chain Challenges with Process Improvements

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

NEW YORK and MUNICH, Aug. 23, 2022 /PRNewswire/ -- 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.

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."

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.

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.

Celonis has been named the market leader by Gartner, IDC, Forrester, Everest Group, Nelson Hall and HFS. Celonis has also been ranked as one of the top companies in the annual Forbes Cloud 100 list.

About Celonis

Celonis reveals and fixes inefficiencies businesses can't see, enabling them to perform at levels they never thought possible. Powered by its market-leading process mining core, the Celonis Execution Management System provides a full set of platform capabilities for business executives and users to eliminate billions in corporate inefficiencies, provide better customer experience and reduce carbon emissions. Celonis has thousands of implementations with global customers and is headquartered in Munich, Germany and New York City, USA with more than 20 offices worldwide.

© 2022 Celonis SE. All rights reserved. Celonis, Execution Management System, EMS and the Celonis "droplet" logo are trademarks or registered trademarks of Celonis SE in Germany and other jurisdictions. All other product and company names are trademarks or registered trademarks of their respective owners.

About QIA

Qatar Investment Authority ("QIA") is the sovereign wealth fund of the State of Qatar. QIA was founded in 2005 to invest and manage the state reserve funds. QIA is among the largest and most active sovereign wealth funds globally. QIA invests across a wide range of asset classes and regions as well as in partnership with leading institutions around the world to build a global and diversified investment portfolio with a long-term perspective that can deliver sustainable returns and contribute to the prosperity of the State of Qatar. Contact: [email protected]

About KeyBanc Capital Markets

KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $40 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on nearly 700 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc. member FINRA/SIPC, and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.

Media contact:
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SOURCE Celonis