September 6, 2013
Recurly found in January 2010 by Dan Burkhart aims to solve subscription based billing problems faced by companies. Recurly is backed by 17 investors like Dharmesh Shah of Hubspot, Ryan Spoon (Principal at Polaris Venture Partners), Josh Felser (Co-Founder Freestyle Capital), etc. As part of the Series A round in January 2012, Recurly managed to rise funding of $6 Million for expanding their business operations.
To handle problems related to recurring billing, Recurly has set up its own payment gateway. Some of the payment gateways which Recurly supports include Authorize.Net, Braintree, PayPal, beansteam, etc. Pricing for small and enterprise business are different. Small business users are charged $99/month and 1.25% of revenue generated whereas enterprise users are charged $399/month (for the first 12 months only) and 1.25% of revenue generated. Click here to read more on pricing. Recurly’s customers include Linkedin, Adobe, Salesforce, Groupon, etc. Some of the other players in this space include Chargify, Chargebee (an Indian firm targeting SMB’s), MoonClerk,etc.
In April 2013, Recurly was found to be SAS 70 (Statement on Auditing Standards No. 70) and SSAE 16 (Statement on Standards for Attestation Engagements No. 16) compliant. Speaking on the accreditation, Dan Burkhart (CEO ofRecurly) said This accreditation validates that Recurly’s infrastructure and operating procedures exceed the high standards that our customers require to ensure data quality and mitigate risk. Back in January 2011, Recurly had also achieved Level 1 Payment Card Industry (PCI-DSS) Security Compliance.
Here is a video that gives an overview of how Recurly works.
LTP View: Meeting compliance standards as well as coming up with business solutions which solve a business pain can be quite challenging for a startup. Recurly has done well to balance out compliance and its client’s business problems. This has ensured that clients like Linkedin, Adobe, etc. prefer Recurly over other subscription billing payment companies.