RevenueCat, which manages subscriptions for mobile apps, raised $40 million in Series B funding to enable developers to monetize apps quickly and easily.
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“We didn’t expect to be fundraising again so soon, but it has been so high velocity,” CEO Jacob Eiting, told Crunchbase News. “We’ve been plugging away on product. We had 3,000 apps using us in August and have doubled that to 6,000 now.”
One of the drivers of the new funding was Anu Hariharan, a partner at the YC Continuity Fund, who is joining RevenueCat’s board as part of the investment.
Hariharan first met the company when it went through Y Combinator in 2018. Although similar subscription companies have come through the accelerator, RevenueCat’s main differentiator was that its application processing interface was a big help to developers.
“It helps developers make more money, and that is powerful,” Hariharan said in an interview. “When you are developing an app, there are usually credit stacks and you have to roll it out in 50 languages, but what RevenueCat has done can be turned on in minutes. We saw a lot of startups using it.”
This time around, RevenueCat intends to use the new capital on a direct link to mobile app developers. Eiting sees a lot of unlocked potential in the app store market — tons of software creators that could be building a business and making money, but are bogged down by capability.
In addition, Eiting said he intends to hire more people, expecting the company to grow to 50 people by the end of the year and to 100 by the end of 2022. Although the company’s headquarters are in San Francisco, he said the company is fully global and remote now, with half of its employees based outside of the U.S.
There are also functionalities that RevenueCat has not yet addressed that Eiting wants to, with one being the potential for building a business platform in a box for mobile developers, he added.
“We are now set up with capital for a long time and can focus internally and on developers,” Eiting said. “The less we have to think about financing the better. Nothing has slowed down, and our confidence to double down has gone up. We have big aspirations for the money, but it will take time to deploy this capital.”
Illustration: Li-Anne Dias
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