Chennai-based subscription management platform Chargebee has raised $55 Mn in its Series F funding round led by Insight Partners. Existing investors Tiger Global and Steadview Capital also participated in the funding round.
With this round, Chargebee has netted a total investment of $105 Mn. In August last year, the company had raised $14 Mn in a Series D round led by Steadview Capital, Insight Venture Partners and Accels Partners. Chargebee is backed by Accel Partners, Tiger Global Management and Insight Venture Partners.
The company plans to invest the capital to improve its platform and develop new solutions to cater to companies with increasingly complex revenue models.
Chargebee, founded in 2010 by Rajaraman S, Thiyagarajan T, KP Saravanan and Krish Subramanian, 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 2500 businesses across 53 countries, with three offices in the US, Salt Lake City and Amsterdam.
“We believe that a steady SaaS-i-fication of the market is already underway, with traditional businesses replicating the best practices of SaaS pricing and business models even outside the realm of software. Subscription businesses today have to be ready at all times to identify and leverage market opportunities rapidly,” said Krish Subramanian, cofounder and CEO of Chargebee.
The startup claims that businesses across the globe are moving to adopt a subscription model, which has made its platform more crucial than ever.
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.
SAAS Market In India
In India, Zoho was among the first wave of companies that used the cost arbitrage of India’s software talent, and the cloud advantage to build a massive business. Following Zoho (and literally from its ranks) came Freshworks and Chargebee, poster boys for another generation.
But these weren’t the only ones. The list includes Wingify, Unmetric (acquired by Falcon), CloudCherry (acquired by Cisco), Attune, Indix (acquired by Avalara), PipeCandy, Klenty, MadStreetDen, Go Frugal, BrowserStack, iCertis, Druva, WebEngage, Clevertap, Zenoti, HighRadius, Rategain, and a whole host of others.
According to NASSCOM report, the SaaS market is expected to grow at 36% per annum and touch $3.3-3.4 Bn by 2022. Globally, the SaaS market is projected to reach over $307 Bn in market size by 2026 from $158 Bn in 2020.