Subscription-based services are everywhere. From meal kits and wine clubs to shave kits and streaming services. You can subscribe to just about anything these days. Until recently, subscription-based businesses had to resort to building their own billing systems.
Chargebee, a San Francisco-based revenue management platform, provides its own billing infrastructure to subscription-based businesses so that they can better utilize their time.
On Tuesday, the company announced that it raised $125 million in fresh financing to expand its global footprint. The Series G cements the company’s unicorn status with a valuation of $1.4 billion.
Founded in 2011, Chargebee helps subscription-based businesses manage and grow their revenue by automating subscriptions, billing, payments, invoicing and more. The company’s service is available for SaaS, eCommerce, e-learning and IoT businesses, to name a few.
Chargebee also works to provide its customers with key metrics, reports and insights throughout the entirety of their working relationship.
“The last few years, and 2020 particularly, have fundamentally redefined the expectations from a subscription billing system. It’s no longer the final piece of the puzzle that needs to be hacked,” Krish Subramanian, co-founder and CEO of Chargebee, said in a statement. “Instead, subscription billing has become the core revenue infrastructure that lets businesses unlock hyper-scale and stay agile to respond to markets, come rain or shine.”
Chargebee will use the additional capital to invest in new partnerships as it continues to scale globally. The company already serves subscription-based businesses in over 60 countries. The revenue management platform is also hiring for a handful of open roles across its product, sales, human resources and growth teams.
“When the billing system stops limiting the boundaries of your GTM strategy, possibilities blow up, time-to-market shrinks,” Subramanian said.
The average business on Chargebee doubles in revenue every 18 months, according to the company. The platform’s list of clients includes Okta, Freshworks, Calendly and Study.com.
“We believe, given the potential of the subscription-led model, the proper revenue infrastructure can catapult businesses into the hyper-growth mode, and we want to be that long-term partner that helps you scale without complexity,” Subramanian continued.
The round was co-led by new investor Sapphire Ventures and existing investors Tiger Global and Insight Venture Partners.
Chargebee has raised $218.2 million in venture capital financing to date, according to Crunchbase.