SaaS firm Chargebee raises $250 million, valuation jumps to $3.5 billion

Bengaluru: Chargebee, an enterprise focussed subscription management platform, has raised $250 million in a new funding round which was co-led by Tiger Global and Sequoia Capital, the company said on Tuesday. Post the financing, the software-as-a-service (SaaS) startup will see its valuation jump to $3.5 billion. Its existing investors like Insight Partners, Sapphire and Steadview Capital have also participated in this round.

ET had first reported in December last year that
Tiger and Sequoia were in talks to co-lead the new funding round in Chargebee. In April 2021, the Chennai-and-San Francisco-based Chargebee had entered the unicorn club
after closing a $125 million funding round.

With this, the company has now raised a total of $470 million in capital.

Chargebee said it plans to use the new capital for product development and global expansion to support the billing and revenue needs of current and future subscription businesses. The company will also look at strategic corporate growth initiatives through the new capital it has raised.

Chargebee’s fundraise caps a stream of recent big-ticket deals in Indian origin SaaS firms. Last week, German enterprise software maker SAP
picked up a minority stake in Icertis on the back of Japan’s SoftBank Vision Fund having purchased secondary shares from the company’s existing investor Eight Roads at a valuation of around $5 billion.

“We built Chargebee to solve infrastructure issues facing high-growth subscription businesses with a product roadmap laser-focused on replacing in-house systems orchestrating the complex parts of revenue intelligence like billing and payments. 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,” said Krish Subramanian, cofounder and CEO, Chargebee.

The company essentially helps other firms manage their revenue operations for subscription-based businesses ranging from early-stage startups to larger enterprises, including the likes of Freshworks, Calendly, Doodle.

“We believe every company will be a subscription company in the future. The predictability of a subscription business model is extremely attractive, and Chargebee is the leading revenue management partner for the subscription economy. Its platform offers customers a real-time 360-degree view into revenues and user behaviour and the intelligence they can use to quickly adapt and make better business decisions,” said Tejeshwi Sharma, MD, Sequoia Capital India.

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