The US-headquartered robotic process automation (RPA) company UiPath bets big on digital transformation and faster adoption of automation in Indian tech companies for its growth. RPA is an automation process that uses bots to automate a set of business processes that are mundane and repetitive. The company will more than double its headcount in India and launch cloud RPA in the coming months.
Raghunath Subramanian, President, and CEO (India) said the company is looking to hire 1,200 people in India in the coming months. The company currently employs close to 400 here. With companies migrating to the cloud, Subramanian said there is a potential for cloud RPAs. "Though we are yet to finalize the date, we are planning to launch cloud RPA for enterprises and small and medium business in a month," he added.
The company is now valued at $7 billion and has received funding of $1 billion so far. RPA is growing at a much faster rate in the country on the back of digital transformation across enterprises. In addition, India's IT and BPO firms are building their own automation platform. Captives, multinationals that have set up R&D centers here, too are investing in technology. All these are driving growth for the company.
For instance, the company's revenue has grown from $80 million in April 2017 to $200 million in March 2019. "That is how fast the market for RPA is growing," he added. The company's revenue comes from licensing of UiPath RPA platform over which enterprises can build their own applications.
Subramanian said, "Close to three years back, there was hardly few who knew about RPA. It all changed in 2017 when enterprises started doing large scale pilot and later implemented them." This was primarily driven by the need to cut down costs and make processes more efficient.
Since 2018, bigger firms began adopting RPA for few of their few processes and slowly increase the scope to others. The company works with a majority of IT service providers in India and large enterprises such as Walmart, General Electric and over 20 banks.
According to a McKinsey report, the return of investment for RPAs vary between 30 percent and 200 percent in the first year. What is noteworthy is it took two days to handle 500 insurance advice notes and now takes 30 minutes. "Even so, hardly 1-2 percent of processes are automated," Subramanian added. The potential is enormous given all companies are moving to digital, he said.