Zuora raises $ 115 million for its subscription management platform
The rise of subscriptions as an economic model to meet new uses is forcing companies to manage different customer cycles. This is what offers Zuora, an American company based in Foster City, California, which developed Relationship Business Management, a platform for managing customer acquisitions, pricing, recurrence of payments, etc.
$ 42 billion in invoice volume
A useful solution at a time when more and more consumers prefer to pay for access to a service rather than to acquire a good. This is the case of Netflix where Internet users seek to watch a film rather than buying the DVD, or Deezer where Internet users access millions of unlimited titles for less than 10 euros per month, instead of buying some discs. “As consumers are becoming subscribers, customer relationship monetization involves a new way of conquering, billing and meeting their expectations,” explains Tien Tzuo, co-founder and CEO of Zuora.
In 2014, Zuora claims to have managed around $ 42 billion in invoice volume, up 109%. To accelerate, the company has just raised $ 115 million from Wellington Management Company, Blackrock, PremjiInvest and Passport Capital and other investors including Marc Benioff, President and CEO of Salesforce. This new funding brings to 250 million dollars the total funds raised since the creation of the company in 2007.
Netflix, GDF Suez among the customers
“Our investor partners understand that the change that is taking place in the transformation of consumption habits will create a new multi-billion euro market for a new generation of software solutions that lie between traditional CRM and ERP. Says Mr. Tzuo.
Among its clients, Zuora has large accounts such as Schneider Electric or the Box cloud specialist, as well as Netflix and GDF Suez. It has eight international offices, including one in France since June 2014, and has more than 500 employees worldwide. Other companies like ChargeBee, which recently raised $ 5 million, or Recurly are also positioning themselves in this market.