RevenueCat, a startup offering a series of tools for developers of subscription-based apps, has raised $40 million in Series B funding, valuing its business at $300 million post-money. Founded by developers who understood the difficulties in scaling a subscription app firsthand, RevenueCat’s software development kit (SDK) solution gives companies the tools they need to build a subscription business, including not just adding subscriptions themselves but maintaining them over time even as the app stores implement changes. It also aids by sharing subscription data with other business tools, like advertising, analytics, or attribution.
The funding round was led by Y Combinator’s Continuity Fund. It included Index Ventures, SaaStr, Oakhouse, Adjacent, and FundersClub, Blinklist CTO Tobias Balling, and Algolia co-founder and former CEO Nicolas Dessaigne. With the round, YC Continuity Partner Anu Hariharan is joining RevenueCat’s board, which today includes Index’s Mark Fiorentino in addition to the founders.
Explains RevenueCat CEO Jacob Editing, the idea for the company came about after he and co-founder Miguel Carranza Guisado (CTO) struggled to figure out subscription infrastructure while working together at Elevate. After years of untangling a “subscription mess” to figure out answers to basic questions like subscriber retention and lifetime value, they realized there was potential in helping solve this problem for other developers.
Apple and Google, Editing explains, aren’t always up to date with what companies need to build subscription businesses. “They’re learning as they go. They just weren’t able to provide us the data we needed, and then also the infrastructure to do that is non-trivial.”
When Eiting and Guisado sat down to work on RevenueCat in 2017, no one was building anything like this. But the demand for the startup’s tools and integrations soon resonated with developers who had faced similar challenges in the growing subsection app market.