Workato Valued at $1.7 Billion in Funding Led by Altimeter, Insight

(Bloomberg) -- Workato Inc. raised $110 million in a funding round valuing the business automation software startup at $1.7 billion.

The round was led by Altimeter Capital and Insight Partners, said Chief Executive Officer Vijay Tella. Existing investors Battery Ventures and Redpoint Ventures also participated in the fundraising.

A competitor of Salesforce.com Inc.’s Mulesoft, Workato specializes in syncing data among different platforms, including software by Salesforce.com, Marketo Inc. and ServiceNow Inc.

Workato’s software is used for job functions such as human resources, finance and sales. Its customers include Zillow Group Inc., Broadcom Inc. and Coupa Software Inc.

It’s part of a growing pool of automation businesses that include UiPath Inc. and Automation Anywhere Inc. Those companies’ products, though, focus more on automating routine tasks.

An initial public offering for the Mountain View, California-based company is possible within two years, Tella said. After getting several offers, the company decided against a sale, he said.

“We will not be acquired,” he said. “We had serious interest from all of the major platforms, many of whom invested in Workato instead.”

Insight Partners Managing Director Praveen Akkiraju said he invested in Workato because it “represents a massive opportunity to increase productivity.” The coronavirus pandemic has resulted in an “acceleration in the digitization of our economy,” he added.

Workato will use the investment for product and technology development. The company also plans to expand its workforce across the U.S., Europe and Asia.