Chargebee raises $55 million in Series F funding round

CHENNAI: Chennai and Silicon Valley-based subscription management software

Chargebee

has raised $55 million in a

Series F

round led by Insight Partners along with participation of existing investors backers Steadview Capital and Tiger Global. With this, the company has raised around $ 105 million of

funding

in total.

The SaaS enterprise is believed to have doubled its valuation with the current fund infusion and is currently estimated to be valued at over $500 million.

The company plans to use the funds to enhance its product so as to help businesses experiment and launch sophisticated revenue models.

The fundraising comes at a time when businesses both small and large prefer a subscription-based business model. Chargebee’s product helps SaaS, e-commerce and other subscription-based businesses manage and grow their revenue by automating subscriptions, billing, invoicing, payments and revenue recognition processes.

“The primary area of the investment is to expand product capabilities and invest in sales and marketing globally and in partnerships with our over 75 global partners,” Krish Subramanian, co-founder and CEO of Chargebee, said. Raising this round from our existing investors is a huge vote of confidence, he added.


Subramanian believes 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 products.


Chargebee is a team of 450 people with significant presence globally in North America, Europe, India and Australia. Its founding team includes techies and friends Krish Subramanian, Rajaraman Santhanam, KP Saravanan, and Thiyagarajan, with product development based out of Chennai.

It is used by more than 2,500 companies globally and claims the highest global customer footprint compared to any other revenue management software provider in the category. It services end-consumers in over 160 countries, processing over $3 billion in revenue.

“Even beyond SaaS and software, we’re seeing a global movement where businesses from cars to coffee pods are launching and scaling with a subscription-first model. The need for an underlying revenue platform that allows businesses this degree of adaptability is paramount today,” AJ Malhotra, vice-president at Insight Partners, said.