Mumbai: Chargebee has raised Rs 403 crore ($55 million) in its Series F funding round, led by Insight Partners.
The current round, the biggest so far by the subscription billing startup, comes at a time when brick and mortar companies are adopting subscription models in their businesses, following the Covid-19 pandemic.
Existing investors Tiger Global and Steadview Capital also participated in the funding round, bringing the total funding raised by the Chennai-based company so far to Rs 771 crore ($105 million).
The company will invest the money to improve its platform and develop new solutions to cater to companies with increasingly complex revenue models.
Chargebee announced a Series D fundraise of Rs 102 crore ($14 million) led by Steadview Capital in August last year. It also raised an undisclosed Series E round earlier in May.
Founded as a bootstrapped Software as a Service startup in 2011, Chargebee’s platform is currently used by over 2,500 companies.
The platform automates billing and revenue operations that are required by subscription-based businesses. Practo and Freshworks are among its India clients.
The company has also seen traditional businesses across Europe, United States and India signing up for online subscription management during the pandemic. Chargebee said that it has processed over $3 billion in revenue so far.
“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, co-founder and CEO of Chargebee.
Subscription billing-based product startups and services have also gained traction in India in the last few months.
Reliance Industries’ JioMart last week announced the launch of app-based milk subscription in various parts of the country.
AJ Malhotra, vice president of Insight Partners, said, “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.”
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