Zuora recently made a $115 million funding announcement underscoring the significant shift all companies are making toward subscription business models. The latest funding round brings the total amount of capital raised by Zuora to $250 million. New investors include public market investors Wellington Management Company LLP and Blackrock Inc, as well as Premji and Passport Capital. They join existing investors Benchmark Capital, Greylock, Redpoint, Index, Shasta, Vulcan, Next World Capital, Dave Duffield, co-founder and chairman of the board of Workday; and Marc Benioff, chairman and CEO of salesforce.com—all of whom participated in this latest funding round.
Zuora is one of the world’s fastest-growing software-as-a-service (SaaS) companies. Its relationship business management (RBM) platform allows companies to manage the entire lifecycle of the subscriber, including customer acquisition, recurring billing and payments, revenue recognition, and subscription metrics. With this new investment, Zuora will continue its global expansion into new geographies and vertical markets, expand its team with world-class sales, engineering and marketing personnel, and fuel continued research and development activities.
Since its founding in 2007, Zuora has correctly predicted the shift toward subscription-based business models and the transformation in the way business is transacted: from buying products to subscribing to services. Companies like Salesforce.com, Amazon, Netflix, and Box were the vanguard of the subscription economy, but the story is now far broader and deeper, and relevant to nearly every industry.
Energy, retail, healthcare, education, consumer goods, financial services, and telecom companies are seeking new approaches to commerce, billing, and finance. These new approaches will provide proof for these disruptive models and usher in the required business-process changes in line with a new era of customer engagement. Product professionals, sellers, marketers, and finance professionals use Zuora to rethink how they engage, acquire, and nurture subscribers anywhere on the globe.