ElectroNeek, a robotic process automation (RPA) software platform for managed service providers (MSPs) and IT teams, has raised $20 million in Series A funding.
Take a closer look, and ElectroNeek could be the first RPA software startup that is seeking to aggressively engage MSPs in the small and midsize business (SMB) market.
That's an important point. Indeed, many MSPs are seeking to extend beyond traditional RMM (remote monitoring and management) and PSA (professional services automation) software. The quest involves a march toward hyperautomation -- which could further improve customer service while further raising MSP profit margins.
RPA software may be fulfill those hyperautomation goals. The reason: RPA bots allow partners and customers to automate manual business and technology processes. Within the IT services market, RPA may also help MSPs to further automate their own help desks and customer support operations.
Robotic Process Automation Software: Market Overview
Demand for RPA software is booming. The global robotic process automation market is expected to reach $10.7 billion by 2027, expanding at a CAGR (compound annual growth rate) of 33.6% from 2020 to 2027, according to Grand View Research Inc.
Amid the RPA market growth, multiple companies are acquiring RPA software providers and associated RPA consulting skills. Key RPA software companies include Automation Anywhere, Blue Prism, Microsoft Power Automate and ServiceNow.
Even IBM is jumping into the action, as part of IBM CEO Arvind Krishna’s M&A effort to pivot the enterprise technology provider toward multi-cloud software that drives business automation.
RPA Software for Channel Partners: Emerging MSP Opportunities
Some of those RPA companies promote their software to MSPs. But much of the early RPA market growth is enterprise-centric in nature.
Still, there are signs that RPA is finally making the shift into the MSP-led SMB technology market. For instance, Ingram Micro agreed to distribute UiPath’s RPA software worldwide, the two technology companies confirmed in May 2021.
Now, ElectroNeek is taking aim at the MSP-led SMB sector. Indeed, the company is promoting the following use cases:
- MSPs can leverage ElectroNeek to build and deploy RPA bots for their customers while retaining control over the pricing of their RPA projects for end users.
- MSPs can also take care of bot development and administration and offer RPA-as-a-Service subscriptions -- which can provide a source of recurring revenue.
ElectroNeek, founded in 2019, now has 250 customers ranging from Fortune 500 companies and global consulting firms to smaller size MSPs in more than 40 countries, the company says.
Early ElectroNeek global partners include PwC and KPMG. MSP partners include CloudAlta Consulting, Promethean and Thrive Automation, among others.
ElectroNeek Funding and Executive Perspectives
The EletroNeek funding round was led by Russia-based private equity firm Baring Vostok Capital Partners with participation of AICPA and existing investors such as YellowRockets.vc, Dragon Capital, I2BF, Angelsdeck, Gokul Rajaram and others. ElectroNeek's valuation now exceeds $100 million, the RPA startup says.
In a prepared statement about the funding, ElectroNeek CEO Sergey Yudovskiy said:
"Partnering with Baring Vostok and the continuous support of our existing investors will enable us to bring more MSPs and companies of all sizes to the ElectroNeek hyperautomation ecosystem. This will put us at the forefront of accelerating adoption of RPA technology, allow us to create meaningful change and provide real help to companies of all sizes."
Added Maxim Loginov, partner at Baring Vostok:
"ElectroNeek is a great example of a company using a unique product and distribution strategy in an already established market. Its founders are set on democratizing access to RPA technology which has already proven its bulletproof value in more than 80% of Fortune 500 companies.
ElectroNeek significantly lowers entry barriers for the whole market and supports new RPA developers by building an easy-to-use low-code platform, which is a mission we were drawn to from the start.
As a fund with a long history of betting on underdogs turned industry trailblazers, we hope that with this new funding ElectroNeek will now be one step closer to fulfilling its vision of bringing much needed innovation into the RPA industry."
ElectroNeek plans to use the funding to significantly expand its engineering, product and support teams in North America, Latin America, Europe, the Middle East and India, the company said.
