Category: bigcommerce

From bootstrapped to a $2.1B valuation, ReCharge raises $227M for subscription management platform



ReCharge, a provider of subscription management software for e-commerce, announced today that it has raised $227 million in a Series B growth round at a $2.1 billion valuation. 

Summit Partners, ICONIQ Growth and Bain Capital Ventures provided the capital.

Notably, Santa Monica, California-based ReCharge was bootstrapped for several years before raising $50 million in a previously undisclosed Series A from Summit Partners in January of 2020. And, it’s currently cash flow positive, according to company execs. With this round, ReCharge has raised a total of $277 million in funding.

Over the years, the company’s SaaS platform has evolved from a subscription billing/payments platform to include a broader set of offerings aimed at helping e-commerce businesses boost revenues and cut operating costs.

Specifically, ReCharge’s cloud-based software is designed to give e-commerce merchants a way to offer and manage subscriptions for physical products. It also aims to help these brands, primarily direct to consumer companies, grow by providing them with ways to “easily” add subscription offerings to their business with the goal of turning one-time purchasers “into loyal, repeat customers.”

The company has some impressive growth metrics, no doubt in part driven by the COVID-19 pandemic’s push to all things digital. ReCharge’s ARR grew 146% in 2020, while revenue grew over 136% over the same period, according to co-founder and CEO Oisin O’Connor, although he declined to reveal hard numbers. The startup has 15,000 customers and 20 million subscribers across 180 countries on its platform. Customers include Harry’s, Oatly, Fiji (Read more...)

Investors still love software more than life



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Ready? Let’s talk money, startups and spicy IPO rumors.

Despite some recent market volatility, the valuations that software companies have generally been able to command in recent quarters have been impressive. On Friday, we took a look into why that was the case, and where the valuations could be a bit more bubbly than others. Per a report written by few Battery Ventures investors, it stands to reason that the middle of the SaaS market could be where valuation inflation is at its peak.

Something to keep in mind if your startup’s growth rate is ticking lower. But today, instead of being an enormous bummer and making you worry, I have come with some historically notable data to show you how good modern software startups and their larger brethren have it today.

In case you are not 100% infatuated with tables, let me save you some time. In the upper right we can see that SaaS companies today that are growing at less than 10% yearly are trading for an average of 6.9x their next 12 months’ revenue.

Back in 2011, SaaS companies that were growing at 40% or more were trading at 6.0x their next 12 month’s revenue. Climate change, but for software valuations.

One (Read more...)

Pipe17 closes $8M to connect a range of e-commerce tools without any code required



This morning Pipe17, a software startup focused on the e-commerce market, announced that it has closed $8 million in funding.

Pipe17’s service helps smaller e-commerce merchants connect their digital tools, without the need to code. With the startup’s service, e-commerce operations that may lack an in-house IT function can quickly connect their selling platform to shipping, or point-of-sale data to their ERP.

The venture arm of a large logistics investor GLP, GLP Capital Partners led the round.

Pipe17 co-founders Mo Afshar and Dave Shaffer told TechCrunch in an interview that the idea for their startup came from examining the e-commerce market, noting the energy to be found concerning selling platforms, and the comparative dearth of software to help get e-commerce tools to work together; Shopify and BigCommerce and Shippo are just fine, but if you can’t code you might wind up schlepping data from one platform to the next to keep your e-commerce operation humming.

So they built Pipe17 to fill in the gap.

According to Afshar, Pipe17 wants to simplify operations for e-commerce merchants through the lens of connection; the pair of co-founders believe that easy cross-compatibility is the key missing ingredient in the modern-day e-commerce software stack, likening the current e-commerce maket to the IT and datacenter worlds before the advent of Splunk and Datadog.

The prevailing view in the e-commerce industry, the co-founders explained, is that to fix a problem e-commerce players should purchase another (Read more...)