Chargebee raises $250m to meet demand from subscription and SaaS businesses
By Joy Dumasia
Chargebee, the leading subscription management platform, announced the closing of a $250 million investment round co-led by Tiger Global and Sequoia Capital, along with returning investors including Insight Partners, Sapphire and Steadview Capital. This round follows a previous round in April, raising $125 million at a $1.4 billion valuation, bringing the total investment in the company to $470 million.
Financial services firm UBS predicts that this “subscription economy” will grow to $1.5 trillion by 2025, more than double its current estimated $650 billion value. As the market grows, so does the opportunity for Chargebee’s global customer base. The new round of funding will be used towards product innovation and global expansion to support the billing and revenue needs of current and future subscription businesses and strategic corporate growth initiatives.
Krish Subramanian, CEO and Co-Founder of Chargebee, said: “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. This round of funding will drive innovation to empower the next generation of businesses leveraging subscription billing models to quickly start, scale and transform.”
Chargebee manages revenue operations for subscription-based businesses ranging from early-stage start-ups to larger enterprises, including Freshworks, Calendly, Doodle and Pret a Manger. Through simple and seamless integrations, Chargebee captures the entire revenue lifecycle from the first interaction to the closing of the books each month, empowering teams to make business growth decisions confidently.
Tejeshwi Sharma, MD, Sequoia India, said: “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. Sequoia’s investment reflects the growing market need and belief in the Chargebee team.”
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