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ChargeBee raises $250 million, valuation zooms to $3.5 billion

ChargeBee raises $250 million, valuation zooms to $3.5 billion

The funds were raised at a valuation of $3.5 billion, a significant jump from the company's $1.4 billion valuation last year.

ChargeBee raises $250 million, valuation zooms to $3.5 billion ChargeBee raises $250 million, valuation zooms to $3.5 billion

 

Subscription-based software-as-a service (SaaS) platform ChargeBee has raised $250 million in a fresh funding round co-led by Tiger Global and Sequoia Capital. The funds were raised at a valuation of $3.5 billion, a significant jump from the company's $1.4 billion valuation last year.

The fresh funding comes at a time when subscription-based businesses are making inroads in conventional sectors and enterprises are modernising their technological infrastructure.

ChargeBee’s cumulative fundraise stands at $470 million. The company last year raised $125 million at $1.4 billion valuation. The funding round had also seen participation from existing investors, including Insight Partners, Sapphire and Steadview Capital.

"As subscription offerings continue to rapidly evolve, our focus remains on providing a flexible growth engine to power, capture and understand revenue, all in real time. This round of funding will drive innovation to empower the next generation of businesses leveraging subscription billing models to quickly start, scale and transform," said Krish Subramanian, CEO and co-founder of Chargebee.

Founded in 2011 by Subramanian, Saravanan KP, Rajaraman Santhanam and Thiyagarajan T, ChargeBee handles revenue operations and client payments of subscription-based businesses. It has expanded its operations to Australia and India, besides the US.

The company said that it plans to use the new round of funding towards product innovation and global expansion to support the billing and revenue needs of current and future subscription businesses, as well as strategic corporate growth initiatives.

"This funding strengthens our mission to solve infrastructure issues facing high-growth subscription businesses with a product roadmap focused on replacing in-house systems orchestrating the complex parts of revenue intelligence like billing and payments," it said in a statement.

Sequoia Capital MD Tejeshwi Sharma said that every company will be a subscription company in the future. ”Chargebee is the leading revenue management partner for the subscription economy. Sequoia's investment reflects the growing market need and belief in the Chargebee team," he added.