RevenueCat, the company that helps app developers by offering tools for in-app subscriptions, just raised $40 million in a Series B funding round.
The round washed by Y Combinator’s Continuity Fund with participation from Index Ventures, SaaStr, Oakhouse, Adjacent and FundersClub and others. The latest round brings the value of the company to $300 million.
RevenueCat provides a SDK for developers to help them build their own subscription businesses and work through issues such as retention of subscribers and lifetime values.
Developers are now able to use the start-up’s tools to view a real-time dashboard of subscription revenue, user churn, lifetime values of subscribers and numbers as well as conversion stats.
When the company launched initially it had some 100 apps and $1 million in revenues.
Now, it features more than 6,000 apps on its platform with over $1 billion in subscription revenues.
The company plans to use the funding to scale up its operations and hire 20 more people globally this year.
It also plans to lower its pricing to reach a higher number of smaller developers. Instead of charging a flat fee of $120 per month, the company want to swap to a percentage model based on app sales.
In a blog post, co-creator Jacob Eiting said:
“To be honest, we had just barely dipped into the money we raised last year, but this funding round secures the company financially for a very long time, allowing us to really focus on our product, team, and mission. And to top it all off, we’re welcoming Anu Hariharan to our board of directors—joining Miguel, myself, and Mark Fiorentino from Index. We now have the structures and assistance in place to build RevenueCat into an enduring company. “