Chargebee raises $ 55 million to help businesses switch to subscriptions – TechCrunch

Chargebee, which helps businesses set up and manage their billing, subscription, revenue operations and compliance, said on Tuesday it had raised $ 55 million in a new round of funding as it seeks to accelerate its expansion into global markets.

The new round of financing, a Series F, for the San Francisco and Chennai-based company was led by Insight Partners, with participation from existing investors Steadview Capital and Tiger Global. The nine-year-old startup, which began its journey in India, has raised $ 105 million to date.

For businesses, setting up and managing a subscription service is a complex process. How do you handle billing when your customers have a free trial or want to change their subscription, for example? This is where Chargebee comes in.

Chargebee enables individuals, small businesses and businesses to automate subscription, billing, billing, payment and revenue recognition processes. It supports dozens of popular payment gateways, including Stripe, Braintree, WorldPay, and PayPal, and its global tax management coverage also helps businesses expand into new markets. MakeSpace, an on-demand storage company, used Chargebee’s services to grow from four markets to 31 in one year, for example.

The startup offers its services through a range of pricing plans, including those that vary based on usage, and is able to renew billing cycles based on registration dates or other specific parameters. It can also selectively route payments and currencies to pre-defined rules. On the back-end, Chargebee customers get a visual flowchart of their customers and can easily define payment and billing responsibilities.

The startup told TechCrunch that companies around the world are set to embrace a subscription model, which has made its platform more crucial than ever. Over 2,500 companies, including Freshworks, Calendly, Linux Academy, Fujitsu, Okta and Envoy are Chargebee customers. (The startup had around 1,800 clients last year.)

Additionally, several businesses and individuals have signed up for the platform in recent months as they navigate the global pandemic. Some of these customers include individuals like teachers and small coffee chains. Pret a Manger, a coffee and sandwich super chain, put Chargebee into operation after its physical stores were hit by the coronavirus outbreak.

AJ Malhotra, vice president of Insight Partners, said there is a global movement underway where businesses from cars to coffee pods are launching and evolving with a subscription-first model.

Adopting a subscription model has become popular in recent years as businesses in various categories, including ecommerce and media, seek to better monetize their services.

“We believe that a constant SaaS-fication market is already underway, with traditional companies replicating best practices in SaaS pricing and business models, even outside of the software realm. Subscription companies today must be ready at any time to quickly identify and exploit market opportunities, ”said Krish Subramanian, Co-Founder and CEO of Chargebee, in a statement.

Additionally, the startup provides its subscription billing service for free to customers until they reach $ 50,000 in revenue, which it plans to expand in the coming days. Chargebee says it processes over $ 3 billion in revenue each year.

Chargebee, which also has offices in Amsterdam, Salt Lake City and Sydney, and clients in more than 160 countries, plans to use this new capital to further develop its footprint in international markets, an executive told TechCrunch.

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