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AI Automation Startup UnifyApps Raises $50 Million, Names Sprinklr Founder as Co-CEO

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UnifyApps, an AI automation startup that integrates enterprise systems to streamline routine business processes, has raised $50 million in a Series B funding round led by WestBridge Capital and appointed Sprinklr founder Ragy Thomas as its new chairman and co-CEO.

The fresh funding values the company at around $250 million, according to a source familiar with the matter. Investors including ICONIQ Capital also joined the round, bringing UnifyApps’ total funding to about $81 million since its launch in 2023.

Positioning itself as an “enterprise operating system for AI,” UnifyApps connects corporate software platforms such as Salesforce and Workday to large language models, helping businesses automate repetitive tasks like HR workflows, claims processing, and supply chain management.

Clients include Lowe’s, HDFC Bank, and Deutsche Telekom, which use UnifyApps’ technology to boost efficiency across departments. The company reported a sevenfold increase in annual revenue, though it did not disclose figures.

Thomas, who built Sprinklr into a billion-dollar customer experience firm, said UnifyApps’ edge lies in being purpose-built for AI—unlike older automation players such as UiPath and Automation Anywhere, which are retrofitting legacy platforms to include AI features. “We’re not layering AI on top of old systems—we’re rethinking the operating model around it,” he told Reuters.

Co-founder Pavitar Singh will continue to serve as co-CEO. The company plans to use the new funds to expand its 400-person workforce by over 100 employees, enhance its AI platform, and strengthen its presence in Europe.

The surge of investment reflects growing demand for enterprise AI integration tools, even as research from MIT shows that 95% of corporate AI projects have yet to deliver meaningful returns—underscoring the difficulty of translating hype into productivity.

Workday Shares Drop as Lukewarm Subscription Forecast Signals Caution in Tech Budgets

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Workday Inc. saw its shares fall by 5% in extended trading Thursday after forecasting second-quarter subscription revenue that merely met Wall Street expectations, signaling caution amid weakened client spending and ongoing economic uncertainty in the enterprise software market.

The California-based human capital and financial management software provider projected Q2 subscription revenue of $2.16 billion, aligning with analysts’ consensus but doing little to boost investor confidence. The company also reiterated its full-year guidance of $8.8 billion in subscription revenue for fiscal 2026.

“We remain focused on executing in this uncertain environment,” said CFO Zane Rowe.

Despite this cautious outlook, Workday reported solid Q1 results:

  • Total revenue: $2.24 billion (vs. $2.22 billion expected)

  • Subscription revenue: $2.06 billion (slightly above $2.05 billion consensus)

  • Adjusted EPS: $2.23 per share (beating $2.01 estimate)

In tandem with its earnings release, the company announced a new $1 billion share repurchase program, a move often intended to reassure investors amid stock volatility.

Competitive Landscape and Federal Setback

Workday competes against enterprise giants like Oracle and SAP, both of which boast larger back-office software businesses. Analysts note that increased competition in the HR and finance software market may pressure pricing and margins in the coming quarters.

Adding to its recent headwinds, Workday was stripped of a federal HR platform contract earlier this month by the U.S. Office of Personnel Management. The decision followed criticism that the award process did not seek competitive bids. The canceled contract had been connected to efforts from within the Elon Musk-backed campaign to restructure federal workforce management, which could further dampen Workday’s growth in the public sector.

Analyst Outlook

While the company continues to grow and outperform near-term expectations, its muted forecast reflects broader macroeconomic concerns and signals that even resilient SaaS firms are not immune to tightening tech budgets. Analysts expect Workday to maintain its position among top enterprise software providers but caution that client spending softness and lost contracts may limit upside in the short term.

Workday Announces Layoffs of 1,750 Jobs Amid AI Investment Push

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Workday, a leading human capital management company, has announced plans to cut approximately 1,750 jobs, or 8.5% of its workforce, in an effort to allocate resources toward artificial intelligence (AI) development. This move is part of Workday’s strategy to adapt to a challenging macroeconomic environment, with high interest rates impacting tech budgets.

The news triggered a 4% jump in the company’s shares during premarket trading. CEO Carl Eschenbach emphasized that these layoffs are a necessary step to focus on AI investments and expand Workday’s global presence.

The human capital management industry is currently dealing with slower spending from enterprise clients, further complicating the business landscape. Workday expects to incur between $230 million and $270 million in charges due to the layoffs, with $60 million to $70 million recognized in the fourth quarter. As of January 31, the company employed roughly 18,800 people.

The company is facing increased competition as the industry consolidates. Recently, Paychex announced its acquisition of Paycor for $4.1 billion, and ADP purchased WorkForce Software for $1.2 billion.

Despite the layoffs, Workday is optimistic about its financial performance. The company expects its fourth-quarter and full-year financial results to meet or exceed previous forecasts, with subscription revenue expected to reach $7.70 billion for the year and $2.03 billion for the fourth quarter, aligning with analyst predictions. Workday also plans to close certain office spaces as part of its cost-reduction measures, with the initiatives expected to be completed by the second quarter of fiscal 2026.