Chargebee Achieves Unicorn Status with $125 Million Funding

A company specializing in billing, subscription, revenue operations, and compliance management has recently attained unicorn status, a significant milestone for startups.

Chargebee, with headquarters in Chennai, India, and San Francisco, California, announced on Tuesday the successful completion of a $125 million Series G funding round.

Funding Details and Valuation

This funding round was spearheaded by Sapphire Ventures, alongside contributions from existing investors Tiger Global and Insight Venture Partners.

As a result of this investment, the 10-year-old company is now valued at $1.4 billion, representing a threefold increase in valuation compared to its Series F round just six months prior.

To date, Chargebee has secured a total of $230 million in funding through various investment rounds.

Addressing the Complexities of Subscription Management

For businesses, establishing and maintaining a subscription-based service to generate consistent revenue can be a challenging undertaking.

Offering introductory trials, managing pricing tier changes, and ensuring smooth billing processes are all critical aspects that require careful attention.

Chargebee provides a comprehensive solution to address these complexities.

Chargebee’s Core Capabilities

Chargebee empowers businesses of all sizes – from individuals to large enterprises – to efficiently set up, manage, and automate their subscription processes.

This includes billing, invoicing, and payment management.

A key advantage of Chargebee is its ability to facilitate a transition to a subscription model for even large organizations within a remarkably short timeframe of 10 days.

The Shift Towards SaaS and Digital Transformation

The business landscape is undergoing a substantial transformation, with companies increasingly adopting digital strategies and the Software-as-a-Service (SaaS) model.

Krish Subramanian, co-founder and CEO of Chargebee, highlighted this shift in an interview with TechCrunch.

This evolving environment has positioned Chargebee as an indispensable tool for numerous companies.

Humble Beginnings and Early Inspiration

Chargebee originated in an apartment in Chennai, a coastal city in India.

Subramanian credits the blog posts of Joel Spolsky, the founder of Trello, as a significant source of inspiration for launching his own venture.

“Spolsky demonstrated how to tackle seemingly mundane problems in innovative ways, and openly shared his company-building journey,” Subramanian explained in a previous discussion.

“This motivated me to start my own company, building the necessary skills and resources while working elsewhere.”

Beyond Basic Billing: A Comprehensive Revenue Platform

Chargebee’s offerings extend beyond simple billing functionalities.

The platform assists businesses in identifying and mitigating revenue leakage, fostering customer loyalty, and seamlessly expanding into new markets.

Furthermore, it enables rapid experimentation with pricing plans, allowing for the introduction or removal of options within just 30 minutes.

Global Reach and Payment Gateway Integration

Chargebee supports transactions in over 100 currencies and integrates with a wide array of popular payment gateways.

These include Stripe, Braintree, WorldPay, and PayPal.

Its comprehensive global tax management capabilities also facilitate business expansion into new international territories.

For example, MakeSpace, a storage company, leveraged Chargebee to expand its operations from four to 31 markets within a single year.

A Growing Customer Base

Chargebee currently serves a customer base exceeding 3,000 businesses, primarily located in the United States and Europe.

Notable clients include Okta, Freshworks, Calendly, Linux Academy, and Fujitsu.

Impressive Revenue Growth

Subramanian reported that Chargebee’s revenue has doubled in the past year.

Additionally, the revenue generated by its customers has increased by 125%, although specific figures were not disclosed.

Navigating the Pandemic and Future Growth

Like many businesses, Chargebee has been carefully navigating the challenges presented by the global pandemic.

The previous funding round secured six months ago provided the company with sufficient capital to maintain stable operations.

However, recent growth has prompted a more aggressive expansion strategy.

“A significant opportunity exists over the next five years to refine this category and serve a larger customer base,” Subramanian stated.

“This realization drove the decision to pursue additional funding, aided by the current favorable market conditions.”

Industry Recognition and Future Vision

Rajeev Dham, partner at Sapphire Ventures, commented, “As the global shift to subscription-first models continues, Chargebee demonstrates a compelling vision for innovative products across diverse market segments.”

“Their thoughtful approach and effective execution have established Chargebee as a leading force in redefining the industry.”

Strategic Allocation of New Capital

Chargebee intends to utilize the newly acquired capital to enhance its product suite and develop new functionalities.

This will further empower enterprises with advanced capabilities.

India’s Thriving Startup Ecosystem

This announcement coincides with a surge in funding activity among Indian startups, with investors increasingly focusing on promising ventures in the country’s rapidly expanding internet market.

Chargebee is the seventh Indian startup to achieve unicorn status this month, and the eleventh this year.

Other recent unicorns include Meesho, CRED, PharmEasy, Groww, Gupshup, and ShareChat.

Furthermore, SoftBank is reportedly in discussions to invest in Zeta and Swiggy, while Razorpay recently secured funding that valued it at $3 billion.