Its successful expansion is further proof of Madrid’s growing appeal for tech companies. But why Madrid? What factors facilitated its development?
At the start of 2024, Celonis confirmed a major milestone: its Madrid-based workforce had surpassed 500 employees, and the company has no plans to slow down. By this year, it aims to reach 1,000 employees in the Spanish region. Madrid is far more than just an expansion site for the innovative German company, it has become a strategic hub for Southern Europe and Latin America. From its offices in AZCA, Madrid’s financial district, Celonis manages a significant part of its international operations and collaborates with major Spanish clients such as Cosentino, Acciona and Iberdrola.
Why Madrid? For Celonis, Madrid was not just about entering a new market. The region provides a twofold strategic advantage: direct access to top digital talent and an ideal base for managing operations in Southern Europe and Latin America. Beyond that, Madrid offers a multilingual talent pool, a structured tech ecosystem and a gateway to emerging markets.
From Munich to Madrid: A Well-Planned Expansion
Founded in Munich in 2011, Celonis revolutionized process mining and process intelligence. Its software analyzes corporate data to detect inefficiencies and optimize operations, a game-changer for clients like BMW, Siemens, and Deutsche Telekom. Now valued at $13 billion, the scale-up has cemented itself as a global process mining leader. Its international expansion – aside from its headquarters in New York and Munich – includes key hubs in London, Tokyo, and, of course, Madrid! For Celonis, choosing Madrid was a strategic move: positioning itself at the intersection of emerging markets and major tech hubs, while benefiting from a business-friendly tax and economic environment.
Madrid: A Thriving Business Environment
Celonis is not an isolated case. Madrid region is becoming a magnet for European and global tech companies, thanks to a unique mix of strategic advantages:
- A strong talent pool: Spain trains thousands of engineers, developers, and data scientists each year. With 329,000 university students, Madrid provides a deep reservoir of skilled professionals feeding its tech ecosystem.
- A booming tech hub: The region is home to nearly 3,000 startups, around 50 data centers, and cloud computing infrastructures from Microsoft, Google, AWS, and Oracle… ideal for tech companies seeking to scale.
- Competitive costs: Office space in Madrid is 30–50% cheaper than in Paris or London, a crucial advantage for fast-growing firms.
- A pro-business tax system: With 0% regional taxes and a reduced corporate tax rate, Madrid offers an attractive environment for expanding companies.
- Tailored support for foreign businesses: The Invest in Madrid agency provides customized assistance, simplifying administrative procedures, connecting businesses with local partners, and facilitating access to public grants and incentives. This proactive approach enabled Celonis to establish its Madrid hub in just a few months.
Madrid: A Strategic Hub for German Companies
Celonis is not the only German company betting on Madrid. Several German corporations have established strategic hubs in the city, benefiting from the same advantages as the process mining unicorn. Siemens Gamesa has set up its global renewable energy hub in Madrid. Lufthansa has chosen the city for its Southern European customer service center. DEKRA, the German vehicle inspection and certification giant, expanded its presence in Madrid in 2022 by opening its first inspection center in Leganés, southwest of the capital. This state-of-the-art facility, equipped with four testing lines and a large outdoor area, is designed to inspect all types of vehicles. Moreover, DEKRA is playing a key role in sustainable mobility with its “ITVerde” program, aimed at promoting environmentally friendly transport solutions. This initiative aligns closely with Madrid’s ambitious green transition and sustainable mobility efforts.
And the trend is expected to grow. As German companies seek new growth drivers, Madrid is emerging as a compelling choice—not only for its economic opportunities but also for its easy access to emerging markets, particularly in Latin America.
Madrid: A Springboard for International Expansion
For Celonis, its story in Madrid is just beginning. The company plans to expand its R&D investments, focusing on enhancing its AI-driven optimization solutions. In the medium term, Madrid could also become a key training hub for Celonis’s European teams. The goal? Attract and retain top talent, while solidifying its presence in a rapidly evolving digital market.