KKR and Salesforce Ventures have invested USD62 million in a Series B round for Copenhagen-based, no-code software test automation platform Leapwork, to accelerate its global expansion.
KKR and Salesforce Ventures have invested USD62 million in a Series B round for Copenhagen-based, no-code software test automation platform Leapwork, to accelerate its global expansion.
The company’s existing investors DN Capital and Headline continue to support the business and made an undisclosed, but ‘significant contribution’, to this Series B funding round as well.
“KKR has a huge network within our type of client area, so we expect them to roll out the red carpet and help us engage with clients following completion of the deal. We also have the best platform to automate Salesforce, so it’s a natural next step for us to have Salesforce on the team,” Leapwork’s co-founder and CEO, Christian Brink Frederiksen (pictured), told Private Equity Wire.
Leapwork is the first investment in Denmark from KKR’s Next Generation Technology fund and Salesforce Ventures, both of which recognise Leapwork’s ability to address the USD68 billion test automation market, with its no-code solution giving an advantage over others in the space, according to the investors.
KKR’s investment was made via its USD2.2 billion growth equity fund, Next Generation Technology Growth Fund II. The fund’s strategy is dedicated to growth equity investments in the tech sector in fast-growing businesses. This is KKR’s seventh European investment through NGT II, and the largest Series B round ever raised in Denmark.
Leapwork’s expansion will focus on the North American market, where the company recently opened a New York office, and where it will be increasing its headcount “significantly”, according to the company.
Leapwork has also invested a lot in the European market over the past year, according to the co-founder. “Now we’re focusing on the US, and as soon as we’ve launched that we’ll start focusing on Asia,” he continued.
“With digital first, IT is everywhere today. These tools are needed for business users to scale their work, and therefore [the no-code trend] is a trend that will pick up immensely over the coming years. It’s breaking down the barrier between humans and computers, to the point where business users can just tell the computer what it needs to get done and it will do it. It’s a trend that will pick up over the next few years,” added Brink Frederiksen.
The fresh capital will be used to further strengthen Leapwork’s international growth in other core markets, with the company recently establishing a new presence in Frankfurt, London, Paris, Amsterdam and Stockholm. The funds will also be used to improve product development, with Leapwork planning to double the size of its tech hubs in Copenhagen and India within the next twelve months.
The Danish company has drawn substantial interest from growth equity investors recently. “Since Covid, the distances have almost vanished, not only in terms of our company’s online sales, but also with respect to relationships with VCs. We had around 180 VCs that were interested in this deal. Most of them we didn’t meet face-to-face,” said Brink Frederiksen.
Nowi Kallen, principal at Salesforce Ventures, commented: “Leapwork has tapped into a significant market opportunity with its no-code test automation software. With Christian and Claus at the helm and increased acceleration to digital adoption, we look forward to seeing Leapwork grow in the coming years.”
