Enterprise software company Zuora announced a new $115 million investment, bringing the total amount of capital raised to fund its relationship business management platform to $250 million.
New investors include public-market investors Wellington Management Company and Blackrock that, along with PremjiInvest and Passport Capital, join existing investors Benchmark Capital, Greylock Partners, Redpoint Ventures, Index Ventures, Shasta Ventures, Vulcan Capital, Next World Capital, Workday co-founder Dave Duffield, and Salesforce.com chairman and CEO Marc Benioff.
Zuora’s RBM platform enables companies to manage the lifecycle of the subscriber, including customer acquisition, recurring billing and payments, revenue recognition and subscription metrics. With the latest investment, the company will continue its global expansion into new locations and vertical markets, expand its sales, engineering and marketing teams, and continue research and development.
“The subscription economy is permeating every industry — entertainment, technology, healthcare, manufacturing with IoT, consumer products, everything,” stated Tien Tzuo, Zuora co-founder and CEO. “Customers are now subscribers, and the new way to acquire, bill, and nurture customers is through monetizing subscriber relationships. Our funding partners understand that this shift is creating a multibillion dollar opportunity for a new category of software that sits between traditional CRM and ERP. The lead investors, including Blackrock and PassportCapital, bring strategic experience to help Zuora meet the enormous opportunity in front of us.”
Founded in 2007, Zuora experienced a 109 percent year-over-year increase in invoice volume in its system in 2014 and growth in contracted invoice volume to reach approximately $42 billion. Internationally, last year Zuora recorded 106 percent in year-over-year revenue growth, opened eight new offices, and expanded its workforce to 500 employees.
