Enterprise-focused subscription management platform Chargebee has raised US$250 million in a funding round led by Sequoia Capital and Tiger Global. The funding has taken the SaaS startup’s valuation at US$3.5 billion.
The company’s existing investors Sapphire, Insight partners, and Steadview Capital also participated in the funding round.
Chargebee’s valuation has become more than doubled in just 9 months, underlining the potential of its services and tools in assisting companies manage their subscription-based models and integrate with payment networks such as Paypal and Stripe. The company entered the unicorn club in April 2021 after raising US$125 million in funding.
The startup will be using the fresh funding for product innovation and global expansion to support the revenue and billing requirements of the present and future subscription business. Chargebee will also look at key corporate growth initiatives with this funding.
“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,” said Krish Subramanian, co-founder and CEO Chargebee.
According to Rajaram Santaram, co-founder and COO at Chargebee, with more businesses adopting the subscription model in the last few years, with pandemic-induced digitization, and with an uptick in adoption of SaaS, Chargebee has grown its annual revenue by more than 100 percent in the last one year.
“We believe every company will be a subscription company in the future. The predictability of a subscription business model is extremely attractive, and Chargebee is the leading revenue management partner for the subscription economy. Its platform offers customers a real-time 360-degree view into revenues and user behaviour and the intelligence they can use to quickly adapt and make better business decisions,” said Tejeshwi Sharma, MD, Sequoia Capital India.
Founded in 2011 by KP Saravanan, Rajaraman Santhanam, Krish Subramanian, and Thiyagarajan Thiyagu, Chargebee offers subscription and recurring billing systems for subscription-based SaaS and ecommerce businesses. The platform aims to provide seamless and flexible recurring billing experience to customers and manage customer subscriptions.