Recurly Raises $12 Million Series B Financing to fund Expansion of Rapidly Growing Subscription Billing Platform
Devonshire Investors and Greycroft Partners Join Existing Investors Polaris Partners and e.ventures as Company Adds Functionality and Enters New Markets
San Francisco, CA–October 20, 2014–Recurly Inc., the leading pay-as-you-go subscription billing platform, today announced that it has closed a $12 million Series B round of new financing. Devonshire Investors (the private investment firm affiliated with Fidelity Investments) led the round with participation from Greycroft Partners and existing investors, Polaris Partners and e.ventures. The new investment will allow Recurly to further accelerate the considerable momentum it has achieved over the last several years in the areas of product innovation, top-notch talent acquisition and customer and revenue growth. With this investment, Shervin Ghaemmaghami, from Devonshire Investors, will join the Recurly Board of Directors.
Recurly launched in 2010 on the premise that businesses require an elegant solution to manage sophisticated subscription billing operations. The company’s service has attracted a rapidly growing list of 1700 customers from 32 countries, processing in 11 local currencies via 22 payment gateways. The company has experienced over 780% growth in revenue and over 34 consecutive months of increasing monthly recurring revenue since its $6 million Series A funding.
“Subscription business models quickly became the standard in the Software as a Service (SaaS) category and have now become strategic imperatives to be competitive in areas such as digital publishing, media (OTT), productivity, data services and e-commerce companies around the world,” said Dan Burkhart, Recurly CEO and Co-Founder. “Recurly’s unique approach to solving complex billing challenges has resonated with major corporations and mid-enterprises alike. Expanding our bench of world-class investors will further fuel our success as we innovate and expand across new markets.”
Recurly, headquartered in San Francisco, currently employs 60 professionals and plans to more than double its headcount by the end of 2015. As a product and engineering focused company, Recurly will use the new funds to grow the capabilities of its subscription billing platform to easily enable integrations with third party services as well as alternative methods of payment.
“Recurly’s innovative technology and API-driven solution offers online and offline businesses a recurring revenue management platform that is truly transformative,” said Dave Barrett, Managing Partner at Polaris Partners; Polaris led the company’s seed round and participated in both the Series A and B rounds. “The management team has a deep understanding of the challenges that come with optimizing revenue streams and has developed an approach that is effective, nimble and unlike any other business model in the space today.”
Recurly, Inc. provides enterprise-class recurring billing management for thousands of subscription-based SaaS, Media, Mobile, Productivity, and Publishing businesses worldwide. Businesses like AccuWeather, DishDigital, GigaOm, Groupon, JibJab Media, HubSpot, Asana, Optimizely, Twitch.tv, and Zillow depend on Recurly’s ability to deliver recurring billing automation. Since its launch in January of 2010, Recurly has deployed subscription billing for companies in 32 countries throughout North America and Europe. Recurly, Inc. is PCI-DSS Level 1, SAS 70 / SSAE 16 Compliant, and operates in compliance with the data protection practices outlined in the E.U.Safe Harbor agreement. For more information, visit http://recurly.com.
About Devonshire Investors
Devonshire Investors is the private investment firm affiliated with FMR LLC, the parent company of Fidelity Investments. The firm has a long track record in venture capital and private equity with funds based in the US (Boston), Europe (London) and Asia (China, India and Japan).
About Greycroft Partners
Greycroft Partners is a leading venture capital firm focused on investments in the Internet and mobile markets. With offices in the two media capitals of the world - New York and Los Angeles – Greycroft is uniquely positioned to serve entrepreneurs who have chosen us as their partners. Greycroft leverages an extensive network of media and technology industry connections to help entrepreneurs gain visibility, build strategic relationships, successfully bring their products to market, and build successful businesses. Greycroft manages $600 million and has made over 100 investments since inception, including leading companies such as AppAnnie, Baublebar, Braintree, Buddy Media, Collective, Extreme Reach, Huffington Post, JW Player, Klout, Maker Studios, Plain Vanilla, Pulse, TheRealReal, Trunk Club and WideOrbit.