Zuora Raises $50 Million in Series E Round
Date: Thursday , October 03, 2013
Zuora, providers of cloud-based billing and financial software for companies selling subscription services and cloud-base software companies, announced a Series E round of $50 million, bringing its total capital raised to $132.5 million since the company’s birth in 2007. The new participants in the round include Vulcan Capital, Northgate and Next World Capital, with additional funding from Benchmark Capital, Shasta Ventures, Tenaya Capital, Redpoint Ventures, Index Ventures and Greylock Partners.
Founded by its Chief Strategist K.V. Rao, the company has been cash-flow positive since 2010, even before it received its Series C round, and that its war-chest was well stocked for at least the next two years, but the company and its investment partners see a huge opportunity ahead that warrants even faster acceleration for this 300-person startup.
"Since our inception in 2007, Zuora has been striving to be a premier Software-as-a –service(SaaS) provider and be part of an ecosystem to challenge Oracle, SAP and other premier technology vendors. This recent shift in the industry to the cloud has created new opportunities for a range of innovative companies that have re invented acquainted business functions and brought them to the 21st Century," explains Rao.
Zuora used its Series D funding of $36 million to expand internationally, and has offices in London and Sydney, and several global customers including the likes of Fairfax Media, Touring Suisse Club, and Telstra in Australia. The company hopes that the latest infusion will help it to delve more into areas like financial services and education, among many vertical industries.
By inventing a simple and easy-to-use solution for subscription commerce, billing and finance, Zuora has given companies a way to implement new pay-as-you-go pricing models, open new revenue streams and gain competitive advantage. Zuora customers are looking beyond inefficient, manufacturing-centric ERP systems to more modern applications that deliver a broad set of commerce, billing and finance capabilities and are purpose-built for contemporary subscription business models.