Monday, September 13th, 2016.
- An article written by Pymnts, www.pymnts.com
The subscription business model is taking over, especially within the enterprise adopting Software-as-a-Service solutions. That leaves opportunity to solve the challenge of charging businesses on a subscription basis.
One startup looks to tackle that challenge and announced on Monday (Sept. 12) that it raised new funding for its solution.
Fusebill revealed a $6 million investment round led by ScaleUp Ventures and Langdell Investments, reports said. Fusebill helps SMEs shift to a subscription-based model for their software products. The company said the Series A funding will be used to strengthen product development and expand globally via sales.
The company also pointed to the spiking demand for cloud billing solutions, citing research from Agile Monetization Platform that found software is headed for a $102 billion market valuation in 2020.
In a statement, Kent Thexton, general partner at ScaleUp, said Fusebill has “the tenacity and vision to rise to the top of one of the hottest trends, especially for eCommerce businesses and other companies looking to monetize IoT. This is the right team and the right product to successfully address the pains SMEs experience in managing the ongoing recurring relationships with clients.”
Fusebill’s announcement said the company has doubled its revenue every year since it launched operations in 2011. Its small business customers use Fusebill to manage recurring subscriptions with more than 10 million end users, it added.
In addition to the new funding, the company said that Thexton, along with Pratik Budhdev, principal at Langdell Investments, will join Fuesbill’s board of directors.