Chargebee doesn’t care what the groundhog had to say yesterday. They had big news of their own. The subscription management platform announced $250 million in new funding in an investment round co-led by Tiger Global and Sequoia Capital to help the company expand their subscription management services. Previous investors – Insight Partners, Sapphire, and Steadview Capital – also contributed to the funding round.
Investments in the company now total $470 million, including a $125 million funding round that closed in April 2021. At that time, Chargebee was valued at $1.4 billion. With the completion of the newest funding round, Chargebee more than doubled its valuation to $3.5 billion in just nine months, a remarkable feat by anyone’s standards.
In the company’s announcement, Chargebee said they would put the new capital toward product innovation, global expansion to support the growth of current and future subscription businesses, and the company’s own strategic growth initiatives.
“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, CEO and co-founder of Chargebee, in a February 1, 2022 news release.
“This round of funding will drive innovation to empower the next generation of businesses leveraging subscription billing models to quickly start, scale, and transform,” Subramanian added.
Tejeshwi Sharma, MD, Sequoia India, commented on why Sequoia supports Chargebee and their vision for serving the growing subscription economy.
“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,” said Sharma. “Its platform offers customers a real-time 360-degree view into revenues and user behavior and the intelligence they can use to quickly adapt and make better business decisions. Sequoia’s investment reflects the growing market need and belief in the Chargebee team.”
Launched in 2011, Chargebee offers subscription management services that automate revenue operations for more than 3,500 high-growth subscription businesses, including everything from startups to enterprise companies. Chargebee helps their clients streamline revenue operations including automating subscriptions, billing, invoicing, payments and revenue recognition. They also provide key metrics, reports, and critical insights from which subscription executives and managers can make business decisions. Chargebee’s clients include Freshworks, Calendly, Linux Academy, Fujitsu, Gigwell, Deliverr, Doctify, Livestorm, Drawboard, Pret a Manger, and more.
Building on recent acquisitions and capabilities
This $250 million funding round comes on the heels of two recent acquisitions: RevLock and Brightback. In October 2021, Chargebee acquired revenue recognition platform RevLock to help the company expand its product offerings. The combination of Chargebee’s and RevLock’s services allows customers to unlock automated revenue recognition as part of their billing processes, minimizing manual processing and helping companies to meet compliance and reporting requirements.
In January, Chargebee acquired Brightback, a customer retention platform that provides clients with automated solutions to increase customer retention and lifetime value. Brightback’s clients include Freshly, ClickFunnels, Unbounce, SoleSavy, Powtoon and BallerTV, among others.
Last year, Chargebee expanded in Australia and India; grew partnerships with GoCardless, Salesforce, Hubspot and PayPal; added capabilities to optimize revenue growth with new payment methods and gateways; and more.
Sorry, Punxsutawney Phil. Your news about six more weeks of winter can’t hold a candle to Chargebee’s nine-figure funding round. This is an exciting time to work for and invest in Chargebee. They offer end-to-end subscription management services, have strong financial backing, a solid foundation, valuable industry partnerships, and a plan for their own growth and the growth of their clients. We think 2022 holds big things for Chargebee as they become one of the top subscription management platforms to watch.