Venture Capital: SaaS Pricing And Financing Platform Ratio Raises $411M After Emerging From Stealth
Ratio is a new fintech platform that combines payments, predictive pricing, financing, and a quote-to-cash process into one platform for SaaS and technology companies.
Ratio, a fintech platform focused on management of SaaS subscriptions, emerged from stealth and secured $411 million in financing, comprising $11 million of venture funding and a $400 million credit facility for customer financing. (CISION PR NEWSWIRE)
The company’s investors include Streamlined Ventures, Cervin Ventures, 8-Bit Capital, HoneyStone Ventures, multi-billion-dollar asset managers and a range of tech CEOs from both large and small companies.
The startup addresses subscription-based business models, now estimated to constitute a $1.5 trillion segment of the recurring revenue market. However, companies offering subscription-as-a-service (SaaS) face a cash flow crunch due to the need to accept steep discounting as well as customer acquisition costs. On the other hand, prospective SaaS buyers need more leeway on payment cash flow. Ratio says its platform allows SaaS companies and other recurring revenue businesses to provide embedded buy now, pay later (BNPL) services through its Ratio Boost product.
“This provides ultimate flexibility to the customer, while boosting sales for vendors and giving them immediate access to the value of the customer contract,” said Ratio in a statement.
In a cash-constrained environment, via its Ratio Trade product, Ratio also enables SaaS businesses the option to obtain non-dilutive capital against their revenue streams.
“We created Ratio to revolutionize the way that SaaS companies and technology businesses price, get paid and fund their growth,” said Ashish Srimal, Ratio cofounder and CEO. “Payment flexibility, intelligent and iterative pricing, combined with a frictionless quote to cash process is the new strategic frontier for SaaS growth. We use data, machine learning, and finance as tools to unlock this growth lever for our customers. This creates a win-win for both tech buyers and sellers — buyers get more payment flexibility to match their cash flow and procurement constraints, and sellers get more revenue acceleration tools.”
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