ReCharge, a supplier of subscription management software program for e-commerce, introduced as we speak that it has raised $227 million in a Series B progress spherical at a $2.1 billion valuation.
Summit Partners, ICONIQ Growth and Bain Capital Ventures offered the capital.
Notably, Santa Monica, California-based ReCharge was bootstrapped for a number of years earlier than elevating $50 million in a beforehand undisclosed Series A from Summit Partners in January of 2020. And, it’s at the moment money circulation constructive, in accordance to firm execs. With this spherical, ReCharge has raised a whole of $277 million in funding.
Over the years, the corporate’s SaaS platform has advanced from a subscription billing/funds platform to embrace a broader set of choices aimed toward serving to e-commerce companies increase revenues and reduce working prices.
Specifically, ReCharge’s cloud-based software program is designed to give e-commerce retailers a method to supply and handle subscriptions for bodily merchandise. It additionally goals to assist these manufacturers, primarily direct to client corporations, develop by offering them with methods to “easily” add subscription choices to their enterprise with the aim of turning one-time purchasers “into loyal, repeat customers.”
The firm has some spectacular progress metrics, little doubt partly pushed by the COVID-19 pandemic’s push to all issues digital. ReCharge’s ARR grew 146% in 2020, whereas income grew over 136% over the identical interval, in accordance to co-founder and CEO Oisin O’Connor, though he declined to reveal arduous numbers. The startup has 15,000 prospects and 20 million subscribers throughout 180 nations on its platform. Customers embrace Harry’s, Oatly, Fiji Water, Billie and Native. But even prior to the pandemic, it had doubled its processing quantity every year for the previous 5 years and has processed over $5.three billion in transactions since its 2014 inception.
ReCharge additionally has 328 staff, up from 140 in January of 2020.
“We saw many brick and mortar stores, such as Oatly, offer their products through subscriptions as a result of the pandemic in 2020,” O’Connor advised TechCrunch. “Certain categories such as food & beverage and pet foods were some of the fastest growing segments in total subscriber count, with 100% and 147% increases, respectively, as non-discretionary spending shifted online.”
He was stunned to see that progress additionally lengthen past the obvious classes. For instance, ReCharge noticed magnificence care merchandise subscribers develop by 120% final yr.
“Overall, we saw a 91% subscriber growth in 2020 across the board in all categories of subscriptions,” O’Connor advised TechCrunch. “We believe there is a combination of factors at play: the pandemic, the rise of physical subscriptions and the rise of direct-to-consumer buying.”
ReCharge plans to use its contemporary capital to speed up hiring in each R&D (engineering and product) and go-to-market features corresponding to gross sales, advertising and marketing and buyer success. It plans to proceed its enlargement into different e-commerce platforms corresponding to MassiveCommerce, Salesforce Commerce Cloud and Magento, and outdoors of North America into different geographic markets, beginning with Europe. ReCharge additionally plans to “broaden” its acquisition scope in order that it will possibly “accelerate” its time-to-market in sure domains, in accordance to O’Connor, and naturally construct upon its services.
Yoonkee Sull, accomplice at ICONIQ Growth, stated his agency has been watching the speedy rise of subscription commerce for a number of years “as more merchants have looked for ways to deepen relationships with loyal customers and consumers increasingly have sought out more convenient and flexible ways to buy from their favorite brands.”
Ultimately, ICONIQ is betting on its perception that ReCharge “will continue to take significant share in a fast-growing market,” he advised TechCrunch.
Sull believes the ReCharge staff recognized the subscription e-commerce alternative early on and addresses the quite a few nuanced wants of the market with “a fully-featured product that uniquely enables both the smallest merchants and largest brands to easily adopt and scale with their platform.”
Andrew Collins, managing director at Summit Partners, was impressed that the corporate noticed a lot progress with out exterior capital for years, due to its “efficiency and discipline.”
“The ReCharge team identified a true product-market fit and built a product that customers love — which has fueled strong organic growth as the business has scaled,” Collins added.