Billogram Raises $45M to Revolutionize Recurring Billing

The Rise of Digital Payments and Billogram's Expansion

The COVID-19 pandemic catalyzed a significant transition towards digital payment methods. As consumers and businesses increasingly conducted transactions online, and even in-person purchases shifted away from cash, the need for robust digital payment solutions became paramount. Billogram, a company specializing in recurring billing, is poised to capitalize on this growth with a new funding round.

Securing $45 Million for European Expansion

Billogram has successfully secured $45 million in funding led solely by Partech. This capital injection will facilitate the Stockholm-based startup’s expansion into six new European markets. The company intends to broaden its reach across Germany, Norway, Finland, Ireland, France, Spain, and Italy, building upon its existing presence in Sweden, according to CEO and founder Jonas Suijkerbuijk.

From SMBs to Enterprise Clients

Initially focused on serving small and medium-sized businesses (SMBs) in 2011, Billogram strategically pivoted to cater to larger enterprises, which now constitute the majority of its clientele. The company experienced a remarkable 300% increase in signed deals in 2020. This momentum continued into the first half of 2021, with a further 50% growth.

Serving Diverse Industries with Recurring Payments

Billogram’s platform supports a diverse range of industries, including utilities like Skanska Energi and broadband providers such as Ownit. Remote healthcare company Kry also utilizes Billogram to manage its monthly invoice payments. The company also serves clients under non-disclosure agreements, preventing public identification.

Beyond App Subscriptions: Complex Recurring Billing

Billogram distinguishes itself from companies like Apple and Google, which primarily handle subscriptions within apps. Its focus lies on a more intricate area: the management of complex, integrated recurring payments for businesses. These payments often involve varying services and fluctuating fees across each billing cycle.

Strategic Partnerships, Including Stripe

Suijkerbuijk revealed that Stripe has recently become a partner of Billogram, highlighting the growing interest from major payment companies. He also confirmed that Stripe is currently not an investor in Billogram, but emphasized a strong existing relationship. Several other prominent payments companies have also engaged in discussions with Billogram.

A Growing Market for Subscription and Recurring Billing

Market research indicates a substantial growth trajectory for the subscription and recurring billing market. Estimates project revenues and services to reach nearly $6 billion this year, escalating to over $10 billion by 2025. Simplifying the payment process remains a key area for innovation, driving the demand for technologies that enhance ease and convenience for both consumers and businesses.

Competitive Landscape and Billogram's Position

Billogram primarily competes with companies addressing the more challenging aspects of the payments spectrum, rather than giants like Apple and Google. This includes established players in debt collection and specialized providers like Chargify, which recently received significant investment from Battery Ventures alongside SaaSOptics.

Debt Collection Agencies as Unlikely Competitors

Suijkerbuijk playfully noted that debt collection agencies, while involved in invoicing, are generally unpopular with both their customers and end-users. He views them as advantageous competitors, lacking the positive brand association Billogram strives for.

Focus on Enhancing the Customer Billing Experience

Billogram will prioritize the development of tools to improve the invoicing and payment experience, making it smoother and less burdensome for customers. This includes expanding customer service capabilities and refining the overall billing process, recognizing the increased importance of addressing non-payments sensitively during challenging times.

Partech's Investment Rationale

Omri Benayoun, general partner at Partech, stated, “We are excited to partner with Jonas and the team at Billogram.” He emphasized Billogram’s success in identifying a market gap and building a sophisticated platform for large business-to-consumer (B2C) enterprises. Partech’s discussions with leading companies across Europe confirmed the value Billogram provides in delivering a superior billing and payment experience.