Battery Ventures has invested $150 million in what it described in a press release as “two complementary, cloud-software platforms that manage billing and automate related financial functions including payments, revenue recognition and analytics for Software-as-a-Service (SaaS) companies.”
SaaSOptics, based in Atlanta, provides a platform B2B companies use to manage subscriptions they sell, according to the release. Companies use SaaSOptics to invoice clients, process payments for subscriptions and to track related metrics.
“With Battery’s deep expertise and success in partnering with cloud-based financial management software companies, we see a huge opportunity to transform the subscription management market,” said SaaSOptics CEO Tim McCormick in the release. “This vision provides a complete financial operations platform across business models: B2B, B2C; regardless of billing structure: fixed price, tiered, seat-based or events-based and any combination of the above.”
Chargify, based in San Antonio, Texas, also works in the subscription management space for B2B customers, the release stated.
Describing the investment, Battery Ventures said in the release: “The two companies, SaaSOptics and Chargify, together are trusted by more than 2,000 customers and manage more than $10 billion in customer annual recurring revenue. Some of the world’s most high-profile SaaS brands use SaaSOptics and Chargify to power their subscription billing and financial operations. The Battery investment is intended to power growth at both companies and allow them to further invest in their products.”
In an interview with PYMNTS earlier this month, sticky.io Chief Technology Officer said Brett McLaughlin said knowing what offer to present customers and when to do it is trickier than some industry observers might expect.
“What we’re seeing is it’s not necessarily hard to get a user to make a commitment,” McLaughlin said. “It’s that it’s hard if you make the wrong offer at the wrong time,” he said.
Machine learning can help companies tailor offers so potential customers feel like they’re being provided with conveniences rather than sold to.