Bot companies are creating many millionaires in India
The numbers of bot millionaires are rising rapidly as valuations of robotic process automation firms soar.
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 between 1,000 and 1,500 options, sources said. The options have a grant price and are assigned a fair market value at the time of vesting. Ui-Path 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 annual report showed that it has 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.