Valuation grows by 3x in less than 6 months reaching $1.4 bn and revenue grows by more than 2x in 2020
April 20, 2021 – Chargebee, the leading subscription billing and revenue management platform, today announced a fresh round of $125M in series G funding, co-led by new investor Sapphire Ventures and existing investors Tiger Global and Insight Venture Partners, along with participation from existing investors. With this round of funding, Chargebee is now valued at $1.4 billion, a 3x growth in valuation since their previous round of funding less than six months ago.
The pandemic in 2020 has accelerated the already growing global shift to SaaS and subscription-based business models from cars to coffee providers moving into a recurring revenue stream resulting in a 12% expected CAGR over the next five years.
As a core revenue enabler for thousands of subscription businesses, Chargebee’s rapid growth has further been spurred by its fast time-to-value, and long-term investment in customer growth. Even large global enterprises are able to go live leveraging a subscription model with Chargebee in as little as less as 10 days.
“Today we are able to roll out a new pricing experiment in 30 minutes and converge on the right pricing point that suits our customer segments,” said Paul Kapsner, Director of Finance at a superfoods company and a long-term customer of Chargebee. “Chargebee has given us the freedom to make mistakes, and then fix them right away,”
Chargebee boasts a 150% Net Retention Rate (NRR), indicating its ability to consistently partner with and solve complex subscription use cases of its fastest growing customers, and has been consistently ranked #1 among all Finance Products in review sites such as G2
“Businesses today have to be able to respond to evolving customer needs, compliance requirements, and market pressures in real-time. More than ever before, businesses need their subscription revenue platform to be the reliable system of record that enables them to rapidly scale their revenue processes,” said Krish Subramanian, Co-founder and CEO at Chargebee. “Chargebee is committed to spearheading this movement toward a subscription-first world by helping our customers realize rapid value, and being an integral partner in their long-term growth journey.”
“We are thrilled to partner with Krish, Raman and the entire Chargebee team as we believe they have built a leading product in the subscription billing and revenue management space,” says Rajeev Dham, Partner at Sapphire Ventures. “As the global shift to subscription-first models continue to grow in popularity, Chargebee has an incredibly bold vision for new products for multiple market segments. After years of knowing them, I’ve been most impressed by their thoughtfulness and execution in building Chargebee as the emerging category leader that is reinventing the broader space.”
Chargeebee has an extensive customer portfolio that includes brands like Okta, Freshworks, Calendly, Study.com, and thousands of other high-growth, subscription businesses spanning various verticals and industries from SaaS, to D2C Ecommerce, OTT Streaming, E-learning, Publishing, and more. The customers come from over 60 countries and sell to end customers across the world. With this fresh round of investment, Chargebee plans to continue enhancing their ability to help businesses scale their subscription revenue operations seamlessly from startup to IPO. The company also announced that it will be increasing its investment on its global expansion, and key partnerships.
“The SaaS subscription-model offers unprecedented growth potential for both traditional and modern businesses to deliver recurring value to their customers,” said Adam Tesan, Chief Revenue Officer, Chargebee. “Our mission at Chargebee is to enable all of these businesses, from startups to enterprise, to realize and rapidly scale this opportunity.”
As the company grows, it is also beginning to reflect in the size of their flagship summit, Champions of Change. The virtual summit is doubling in size since the previous event in October 2020, with participation from 6000 business leaders. Scheduled to take place on May 19th and 20th, the Champions of Change summit brings together leaders and rising change-makers in the subscription space to a common platform.
Chargebee is the subscription billing and revenue management platform that automates revenue operations of over 3000 high-growth subscription-based businesses from startups to enterprises. Its SaaS platform helps subscription businesses across verticals – SaaS, eCommerce, e-learning, IoT, Publications etc. manage and grow their revenue by automating operations around subscriptions, billing, invoicing, payments and revenue recognition and it provides key metrics, reports and insights into their business. Founded in 2011, Chargebee today includes businesses across 60 countries, like Okta, Freshworks, Calendly and Study.com amongst its customers.