Redwood City, CA — November 9, 2010 — Zuora, the subscription billing leader, today announced that it has received $20 million in a Series C round of funding led by Redpoint Ventures. Zuora's existing investors, Benchmark Capital, Marc Benioff, Shasta Ventures and Tenaya Capital, also participated. To date, the company has raised $41.5 million in funding.
Zuora has been cash flow positive since its 2010 fiscal Q1, and has grown in excess of 400% in 2009 and is on track to repeat that in 2010. As a result of its success, Zuora will use the funds to rapidly grow its operations in the U.S. and EMEA and to accelerate its entry into new geographies. Zuora will also use the funds to dramatically expand its portfolio of industry-specific solutions to meet the growing enterprise demand for subscription billing solutions.
Concurrent with the funding of Series C, Tim Haley, Founding Partner of Redpoint Ventures has joined the Zuora board of directors. Notably, Haley was the first investor at Netflix, one of the leading subscription-based business models. Haley joins Peter Fenton, partner at Benchmark Capital; Scott Thompson, president of PayPal; and Jason Pressman, partner at Shasta Ventures, as outside members of the board.
"Like so many companies, Netflix started on a shopping cart-based, product-focused business model, and it wasn't until it discovered the power of subscriptions that Netflix really took off," said Haley. "Many enterprises are having that same epiphany now which is why I think what Zuora is doing is so transformational. Zuora has the ability to power the Subscription Economy across a variety of industries, positioning itself as one of the most exciting enterprise software companies to watch."
"Three years ago, we predicted that industry after industry would be shifting to subscriptions, and that has become a reality in industries as diverse as cloud computing and consumer services and with industry leaders like ZipCar, Pandora and of course Netflix," said Zuora co-founder and CEO Tien Tzuo. "We've only witnessed the beginning, and it's the time to step on the gas. Whole industries are starting to be transformed with subscription billing as the most important element of success. That's why we partnered with investors who shared our vision, and would help us accelerate our aggressive efforts to grow and lead this market and enable the next phase of the Subscription Economy."
Every day, more companies are joining the Subscription Economy as enterprises and consumers shift from buying outright to subscribing to broad libraries of products and solutions. New-comers like Netflix, ZipCar and Pandora have forced new and traditional enterprises to adjust to the unprecedented pace of transformation. Subscription billing is the catalyst behind this massive transformation occurring in several multi-billion dollar markets, positioning it as one of the most strategic enterprise application over the next decade.
Zuora's customers are some of the leaders across these industries that are rethinking their core products and value propositions as services and investing rapidly in subscription revenue models, including:
Zuora was founded in 2007 by executives from salesforce.com and WebEx to define and lead the subscription billing market. Since that time, Zuora has rapidly grown into the clear market leader across key metrics, including:
Zuora's subscription billing and commerce platform changes the way subscription businesses manage and sell to customers, allowing them to bring new products to market in less time, with more flexibility and less hassle. Zuora customers are up and running within 90 days and often recognize 200% ROI within weeks. Zuora is built from the ground up by SaaS industry visionaries and veterans from salesforce.com, WebEx, Accenture, Google, eBay, Oracle and Vitria. Zuora customers include Reed Business Information, Coremetrics, InsideView, Marketo, Ricoh, Box.net, Xactly, Cloud Central and EMC.
To learn more about Zuora, please visit www.zuora.com.