Low-code application platform specialist OutSystems has formally announced a colossal $360m funding round. What does it mean?
In our recent in-depth profile of OutSystems, we highlighted: “OutSystems bridges two worlds very effectively indeed: first, the world of business process automation; and second, the world of rapid, low-code application development… this is an offering with a lot of compelling capabilities.”
It’s been clear for a while that OutSystems is making waves – particularly in Europe but increasingly in North America, too.
Today, the company’s announced a colossal round of funding from KKR and Goldman Sachs totalling $360m, which values it at significantly more than $1 billion. The company last took funding (totalling $55m) in 2016.
OutSystems says it will use this funding to continue business expansion, but also to increase its investment in R&D. As a vendor with a great track record of delivering advanced app dev features, and a stated intention to use AI to help guide and automate more aspects of app dev, it’ll be very interesting indeed to see what the company prioritises. (One fairly prosaic thing it might do is build web-based development environment, the current reliance on Windows-based tools being something that stands out in a world that’s rapidly shifted to web-based tools).
UPDATE: CEO Paulo Rosado just published this memo highlighting some of OutSystems’ new investment priorities.
So, what does this new funding mean?
- OutSystems is hardly a startup – it’s already a well-established company with a very solid track record. Nevertheless, this funding will make it even easier for OutSystems to highlight long-term sustainability to potential customers.
- For OutSystems competitors, it should make them nervous – the company now has the resources to push further, faster and massively increase its visibility across the marketplace. We already see OutSystems out-competing more high-profile players, partly through the quality of its technology but also partly through its keen pricing.
When even companies like Pegasystems are in a rush to demonstrate their ‘low-code’ credentials you know that there’s change afoot. Kudos to OutSystems for continuing to push to make model-driven app dev more appealing and profitable.