SaaS start out-up Chargebee has raised a fresh $125 million in funding co-led by new investor Sapphire Ventures and current backers Tiger Global and Insight Venture Partners at a valuation of $1.4 billion, joining the unicorn club. Led by co-founder & CEO Krish Subramanian, the US and Chennai-based start out-up automates income operations of subscription-based enterprises.
The most current economic round that also saw participation from current investor Steadview Capital has tripled the valuation of the organization. The firm had last raised about $55 million in October 2020 at a valuation of about $500 million. Chargebee has garnered $230 million in capital so far.
The organization will deploy the fresh funds to expand its worldwide footprint and develop its partnership network, it mentioned in a statement. Already, more than 17,000 enterprises globally use the services of Chargebee, the firm claims. Chargebee mentioned that its platform is effortless to implement onboarding can be completed in significantly less than 10 days, even for huge worldwide enterprises.
“The global pandemic has accelerated the already growing shift to SaaS and subscription-based business models from cars to coffee providers. Demand for moving into a recurring revenue stream is expected to grow at a 17.5% CAGR over the next five year,” the organization mentioned.
According to IDC, the worldwide SaaS market place is anticipated to cross $276 billion by FY24. Nasscom estimates the income for pure play Indian SaaS corporations could boost six-fold to $13-15 billion by FY25 from $2.5 billion in FY20, suggesting the market place share of pure play Indian SaaS corporations could boost to about 5% by FY25 from about 2% in FY20.
Credit Suisse not too long ago wrote in its report on one hundred unicorns, the emergence and adoption of new technologies such as cloud, mobile, RPA, AI and the like more than the last 5-10 years has not only facilitated enhanced penetration of the SaaS company model but also brought about new verticals/regions exactly where SaaS can be deployed. “For example cybersecurity, API, analytics, have become emerging areas of focus for SaaS companies,” Credit Suisse observed.
Chargebee is the second SaaS firm to have bagged fresh funding this week following Druva that raised a fresh $147 million from a clutch of investors at a valuation of more than $2 billion.
US-based Tiger Global has been heavily backing start out-ups operating in India. Earlier this month, it led investments in a bunch of nearby tech enterprises which includes Groww and Mohalla Tech pushing them to the billion dollar valuation club.