Bot cos are cre­at­ing mil­lion­aires

The Times of India (New Delhi edition) - - Times Global - Shilpa.Phad­nis @times­group.com

Ben­galuru: The num­bers of bot mil­lion­aires, in­clud­ing in In­dia, are ris­ing rapidly as val­u­a­tions of ro­botic process au­to­ma­tion (RPA) firms like UiPath and Blue Prism soar. These com­pa­nies have been very lib­eral in of­fer­ing stock op­tions to em­ploy­ees.

UiPath, which has 400 em­ploy­ees in In­dia, of­fers stock op­tions to every em­ployee. The en­ter­prise RPA com­pany has around 30 se­nior em­ploy­ees at the level of di­rec­tor and above whose op­tions are worth be­tween Rs 1 crore and Rs 3 crore, in­dus­try sources told TOI. Vi­cepres­i­dents in UiPath get an av­er­age of 12,000 op­tions.

Mid-level em­ploy­ees, who get a salary of around Rs 15 lakh, re­ceive be­tween1,000 and 1,500 op­tions, sources said. The

UiPath has raised

Au­to­ma­tion Any­where has raised

Blue Prism is listed and has a Wealth cre­ation in au­to­ma­tion cat­e­gory is more wide­spread than in oth­ers. Esops is a great mo­ti­va­tional tool and the lock-in pro­vides some sta­bil­ity to man­age­ment —

op­tions have a grant price and are as­signed a fair mar­ket value at the time of vest­ing. UiPath has raised $1 bil­lion in to­tal fund­ing. Most re­cently, it raised $570 mil­lion in its se­ries D round that val­ued the com­pany at $7 bil­lion, and made co­founder Daniel Dines, who owns a 20% stake, the world’s first bot bil­lion­aire.

Data plat­form Forge Global showed that in 2015, when UiPath raised $30 mil­lion, its share was val­ued at $0.92. In less than five years, this has grown to $39.5 a piece. Some em­ploy­ees in the US liq­ui­dated their stock in the se­ries-B round, sources said. An email sent to UiPath on the stock com­pen­sa­tion did not elicit a re­sponse. Blue Prism has an em­ployee share plan but de­tails for em­ploy­ees in In­dia are not dis­closed.

Its 2018 showed that an­nual it has re­port is­sued 33,969 shares un­der the em­ployee stock pur­chase plan. The op­tions vest over a three­year pe­riod, one third each year. Au­to­ma­tion Any­where gives stock op­tions to se­lect em­ploy­ees, but the com­pany de­clined to share de­tails.

The cy­cle time for wealth gen­er­a­tion is much faster than for tra­di­tional IT firms and at par with new age firms like Flip­kart. Ritesh Chan­dra, man­ag­ing part­ner in Aven­dus Cap­i­tal, said that wealth cre­ation in the au­to­ma­tion cat­e­gory is more wide­spread than in most other cat­e­gories.

Vivek Wad­hwa, dis­tin­guished fel­low at Carnegie Mel­lon Univer­sity’s col­lege of en­gi­neer­ing at Sil­i­con Val­ley, said this is the same sit­u­a­tion as in Sil­i­con Val­ley dur­ing the dot­com boom, when for the first time, thou­sands of In­di­ans be­come mil­lion­aires.

$550 mil­lion and is val­ued at $2.6 bil­lion Ritesh Chan­dra |

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