MUMBAI: Chargebee, which runs a software-as-a-service-based subscription management platform, on Tuesday said it has raised $250 million in funding co-led by Tiger Global Management and Sequoia Capital, which has raised the company’s valuation. has been increased to 2.5. up to $3.5 billion.
The round also saw participation from existing investors including Insight Partners, Sapphire and Steadview Capital.
Chargebee, operated by Chargebee Technologies Pvt Ltd, has raised $470 million with the latest fundraising so far. It last raised $125 million in April 2021 at a valuation of $1.4 billion.
The company plans to use the fresh funding for product innovation and global expansion to support the billing and revenue needs of current and future subscription businesses, as well as strategic corporate growth initiatives.
Chargebee claimed that it is seeing increased subscriptions and increased demand in SaaS businesses.
Quoting a UBS financial services report, Chargebee said the subscription economy will grow to $1.5 trillion by 2025, giving the company the opportunity to expand its customers globally.
“As the subscription offering continues to evolve rapidly, our focus remains on providing a flexible growth engine, real-time revenue capture and understanding.
“This round of funding will spur innovation to quickly launch, scale and transform the next generation of businesses that leverage the subscription billing model,” said Krish Subramanian, Chief Executive Officer and co-founder of Chargebee.
Chargebee, founded in 2011 by Subramaniam, Saravanan KP, Rajaraman Santhanam and Thiagarajan T, manages revenue operations for subscription-based businesses for startups and large enterprises.
The company counts FreshWorks, Calendly, Doodle and Pret a Manger among others as its customers.
Chargebee said its platform captures the entire revenue lifecycle from the first interaction to the closing of the books each month, helping teams make business development decisions with confidence.
The company said it recently expanded offerings and created an integrated revenue management platform, called Revlock, with the strategic acquisition of leaders in revenue recognition.
Chargebee also added Brightback, a platform that churns out deflection and retention, it said.
The company said its platform has also added capabilities to optimize revenue growth with new payment methods and gateways, compared to last year’s one-time payments to meet local tax and e-voicing regulatory and compliance requirements. support.
These capabilities have enhanced reporting and analytics and updated integration with NetSuite and Microsoft Dynamics and CRM (customer relationship management) ERP (enterprise resource planning) such as HubSpot and Zoho to support more complex sales motions.
The company said it expanded globally with new offices and investments in Australia and India and partnerships with industry leaders including GoCardless, Salesforce, HubSpot and PayPal.
Tejashwi Sharma, Managing Director, Sequoia India, said, “We are confident that every company will be a subscription company in the future. The subscription business model is predicted to be extremely lucrative, and Chargebee is the leading revenue management partner for the subscription economy.”
The company had joined the prestigious Unicorn Club in 2021, when it raised $125 million in a Series G round from Sapphire Ventures, Tiger Global, Insight Venture Partners and Steadview Capital. In October 2020, the company raised $55 million in a Series F funding round from Insight Partners.
Chargebee, which has offices in San Francisco, Amsterdam, Salt Lake City and Chennai, has evolved from offering automated billing operations to managing end-to-end subscription workflows, including revenue operations and compliance.
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