India's Chargebee gets $250m, valuation more than doubles
Tiger Global Management and Sequoia Capital India have co-led a USD 250m round for Indian financial technology provider Chargebee, more than doubling its valuation in 10 months to USD 3.5bn.
Insight Partners, Steadview Capital, and US-based Sapphire Ventures re-upped. It follows a USD 125m Series G round in April last year that valued the company at USD 1.4bn. Total funding since inception in 2011 now amounts to USD 470m. Earlier investors include Accel Partners.
Chargebee provides more than 4,000 subscription-based businesses with software-as-a-service (SaaS) tools to automate invoicing, taxes, accounting, and email notifications, as well as billing and payments through gateways like PayPal. This facilitates rapid expansion into new markets.
The technology is marketed as capturing the entire revenue lifecycle from first interaction to the closing of the books each month, empowering teams to make business growth decisions with confidence.
Clients include Freshworks, Okta, Calendly, Doodle and Pret a Manger. In addition to PayPal, partners include GoCardless, Salesforce, and Hubspot.
In recent months, the company has developed a unified revenue management platform through strategic acquisitions of revenue recognition company RevLock and churn deflection and retention player Brightback. Both businesses are US-based.
Chargebee said it has also added capabilities to optimise revenue growth with new payment methods and gateways and support for one-time payments to meet local tax and e-voicing regulatory and compliance requirements. In addition, it has enhanced reporting and analytics capabilities and updated sales support systems.
The company observes that its target market is growing in step with the “subscription economy,” which has been estimated to be worth USD 1.5trn by 2025 as more businesses become recurring revenue businesses. The market is said to be worth USD 650bn today.
The new funding will be used 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.
“We believe every company will be a subscription company in the future,” Tejeshwi Sharma, a managing director at Sequoia India, said in a statement.
“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.”
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