Chennai-based subscription management platform Chargebee has raised $14 Mn (INR 100.5 Cr) in its Series D funding round led by Steadview Capital, Insight Venture Partners and Accels Partners.
With this investment, the company has raised funds of $38.2 Mn (INR 274 Cr). In March last year, the company had raised $18.5 Mn in a Series C round led by Insight in the NYC-based investor’s first deal. Chargebee is backed by Accel Partners, Tiger Global Management and Insight Venture Partners.
ChargeBee says it will utilise the funds to fill gaps in the subscription management ecosystem and to upscale automation in this field, to support business revenue operations.
The investment in Chargebee is another testament to the rise of SaaS and allied businesses in the Indian market. With Chennai already home to Saas unicorns Zoho and Freshworks, the city has turned into the SaaS hub in the Indian ecosystem.
Globally, SaaS offerings and subscription-based solutions are growing rapidly and so are complaints from their clients about revenue leakage thanks to unnecessary charges, auto-renewals and more.
Chargebee, founded in 2010, is an automated subscription billing software platform that integrates with payment gateways to automate payment collections, invoicing, email notifications and customer management. Its latest product updates enable clients to optimise revenue operations, compliance and revenue recognition. The company claims to cater to 1800 businesses across 53 countries, with three offices in the US and Amsterdam.
“Enterprises and rising startups recognise the value of subscription businesses. Unlike transactional revenue models, subscriptions require companies to evaluate longer-term metrics and redefine KPIs [key Performance Indicator] for success,” said Krish Subramanian, co-founder and CEO of Chargebee.
In the last quarter, Chargebee opened another office in Salt Lake City in Utah and Amsterdam. The Amsterdam facility will be the company’s European headquarters, which the company recognises as a growing market. SaaS market in the continent is expected to grow at a compound annual growth of 25% till 2023.