Chargebee raises $250M to meet the growing demand from subscription businesses
A pioneering subscription management platform, Chargebee announced that it has closed major funding of $250 million. The latest funding found was led by Sequoia Capital and Tiger Global. The round also included participation from previous investors, including Insight Partners and Steadview Capital.
Chargebee’s last funding found was in April 2021 when it raised $125 million at a valuation of $1.4 billion. The total investment in the company is $470 million.
According to UBS financial services firm, the subscription economy is expected to grow to $1.5 trillion by the year 2025, which will double its current $650 billion estimates .
Chargebee to use funds towards innovation
As more businesses become or are conceived as recurring revenue businesses, the opportunity for Chargebee’s global customer base increases. Funds from the latest investment round will be used for product innovation as well as global expansion. This will support the revenue and billing needs of the future and existing subscription businesses, in addition to strategic corporate growth initiatives.
CEO and co-founder of Chargebee, Krish Subramanian said “We built Chargebee to solve infrastructure issues facing high-growth subscription businesses with a product roadmap laser-focused on replacing in-house systems orchestrating the complex parts of revenue intelligence like billing and payments.
As subscription offerings continue to rapidly evolve, our focus remains on providing a flexible growth engine to power, capture and understand revenue, all in real-time.” Subramanian added that the latest round of funding is to drive innovation to empower the next generation of businesses that will leverage subscription billing models to start, scale, and transform quickly.
Tejeshwi Sharma, MD, Sequoia India said that Sequoia believes that, in the future, every company will be a subscription company. Sharma added that the predictability of a subscription business model is extremely attractive, and Chargebee is a leading revenue management partner for the subscription economy.
The platform of Chargebee offers its customers a real-time 360-degree view into revenues and user behaviour and the intelligence which can be used to quickly adapt and make better business decisions. Sequoia’s investment reflects the growing market need and belief in the Chargebee team.
Chargebee is one of the most popular and reliable subscription management platforms that’s focused on automating revenue operations of more than 4,000 subscription-based companies – from startups to enterprises. The SaaS platform aids subscription-model businesses across verticals, which include SaaS, e-learning, eCommerce, IoT, and Publications.
It also helps in managing and growing revenue by automating subscription, payments, billing, invoicing, and revenue recognition operations and provides all the necessary including key metrics, reports, and business insights. Founded in 2011, Chargebee’s global customer base includes big brand names, like Freshworks, Okta, Calendly, and Study.com.
To build a unified revenue management platform, the company has recently increased its offerings by conducting strategic acquisitions RevLock (the leaders in revenue recognition) and Brightback (the leader in churn deflection and retention). Chargebee also expanded its presence globally by adding new offices and investments in India and Australia and partnerships with GoCardless, PayPal, Salesforce, and Hubspot.
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