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With the fresh funding, Chargebee’s total capital haul stands at US$105 million
Chargebee Inc., which helps businesses manage subscription billing and recurring payments, has secured US$55 million in its Series F funding round led by U.S.-based private equity and venture capital firm Insight Partners, the company announced in a press release today.
The financing round also saw participation from existing investors Steadview Capital, Accel, and Tiger Global, a Chargebee spokesperson told Jumpstart.
Chargebee will utilize the fresh funds to enhance its product and integration ecosystem, enabling businesses to experiment and launch increasingly sophisticated revenue models, the statement noted.
The fresh capital infusion brings Chargebee’s total funding to $105 million, according to the press statement. While the company had previously announced a raise of $14 million in its Series D round in August last year, it has not disclosed any details of its Series E.
Founded in 2011 in Chennai, India, Chargebee’s subscription platform helps businesses manage subscriptions and recurring payments, and automate billing, invoicing and revenue recognition. Chargebee’s platform essentially automates complex billing and revenue operations challenges that arise as subscription-based businesses try to scale, the statement noted.
Moreover, the platform’s global tax management coverage helps businesses expand internationally. For instance, Chargebee helped on-demand storage company MakeSpace, to scale from four to 31 different markets last year.
“As businesses scale, and especially in the context of recent global events, the need to be adaptive and flexible becomes critical,” Chargebee Board Member and Advisor Shelley Perry said in the statement.
“Solutions like Chargebee let businesses leverage these changes into growth opportunities by making it easy for them to plan, deploy and roll out revenue and business model changes,” she added.
With offices in the U.S., Europe, Australia and India, Chargebee claims to have the largest global footprint in terms of payment, billing, and tax management coverage, with customers located across 160 countries and $3 billion in revenue processed on its platform every year, the statement noted.
The company’s platform supports various popular payment gateways including Stripe, Braintree, WorldPay and PayPal, and is used by over 2,500 startups as well as large corporates including Freshworks, Calendly, Doodle, Okta, Pret a Manger, and Envoy, among others.
The increasing adoption of cloud-based enterprise solutions has fueled the growth of subscription-based revenue model, and has expanded beyond Software-as-a-Service, to encompass almost every service, referred to as Anything-as-a-Service or the XaaS model.
According to Insight Partners Vice President AJ Malhotra, “Even beyond SaaS and software, we’re seeing a global movement where businesses from cars to coffee pods are launching and scaling with a subscription-first model. The need for an underlying revenue platform that allows businesses this degree of adaptability is paramount today.”
According to a report by IMARC Group, the global XaaS market is expected to grow from $93.5 billion in 2018 to $344.3 billion by 2024, indicating a huge market for platforms such as Chargebee.
“We believe that a steady SaaS-i-fication of the market is already underway, with traditional businesses replicating the best practices of SaaS pricing and business models even outside the realm of software,” Co-founder and CEO of Chargebee Krish Subramanian said in the statement.
“Subscription businesses today have to be ready at all times to identify and leverage market opportunities rapidly,” he added.
Header image courtesy of Chargebee