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At a Glance
It was a big day for RevenueCat as it not just raised $40M in a Series B funding from Y Combinator’s Continuity Funding but also lowered the pricing for its tools to help developers.
RevenueCat, a startup that provides tools to build accessible in-app subscriptions, has raised $40 million in a Series B funding led by Y Combinator’s Continuity Fund, at a valuation of $300 million. Alongside funding, the company has released its new pricing structure, lowering its tools’ cost, to cater to the needs of app developers in addition to large companies.
The price lowering is predominantly aimed at reducing the entry barriers for developers. By dropping the base fees from its Analyze and Grow plans (now called Starter and Pro), RevenueCat now offers a pay-as-you-go system, RevenueCat Jacob Eiting wrote in the blog post.
“This will mean a short-term revenue hit for us, but we believe having access to our whole platform will give more developers the chance to grow their apps from a side project to the next big thing.” the post read.
With the closure of Series B, RevenueCat’s total funding stands at $56.5M as per Crunchbase data. Other investors — Index Ventures, SaaStr, Oakhouse, Adjacent, and FundersClub, and Blinklist CTO Tobias Balling and Algolia CEO Nicolas Dessaigne — participated in the funding round.
What does it do?
Founded in 2017, RevenueCat offers a series of tools for subscription-based app developers. Using its software development kit (SDK), companies are equipped with the tools required to build a subscription business, including adding subscriptions themselves and maintaining them over a series of changes that the app stores implement. It also shares subscription data with other tools that a business uses.
Currently, RevenueCat has over 6,000 apps on its platform, and over $1 billion in tracked subscription revenue, managed using the tools it provides.
Anu Hariharan, Partner at Y Combinator’s Continuity Fund, who will be joining RevenueCat’s board now, alongside the founders and Mark Fiorentino from Index, stressed the rising usage of subscription-based models. She added,
“RevenueCat helps developers roll out subscriptions in minutes and creates a source of truth for customer data. With developers creating solutions to problems in the world, it’s important that they can find ways to monetize, grow, and support their most committed customers. RevenueCat is doing so by building subscriptions 2.0.”Anu Hariharan, Partner at Y Combinator’s Continuity Fund