Leading European fund Index Ventures heads latest $36 million round
News International, VNU Media and Touring Club Suisse lead shift to the Subscription Economy
London, United Kingdom — November 16, 2011
- Zuora, the fastest growing enterprise SaaS company, today announced a substantial expansion into Europe. With new customers, new investors and a growing team, Zuora will expand rapidly in a move to meet the region’s surging demands for subscription-based services in telecoms, media, technology, consumer services, high tech and other industries.
- This growth will be supported by a Series D $36 million round of funding, led by Index Ventures, Greylock Partners and Dave Duffield, founder and co-CEO, Workday. Concurrent with the funding, Michelangelo Volpi from Index has joined the Zuora board. This deal brings total Zuora funding raised to $82.5 million to date. Existing investors include Benchmark Capital, Redpoint Ventures, Shasta Ventures, Tenaya Capital and salesforce.com CEO Marc Benioff.
Zuora Accelerates Expansion as the Subscription Economy Surges across Europe
- Subscription-based models have been embraced across the European market for decades across media and telecoms industries. With the new cloud, mobile and social trends driving innovation, more and more companies from startups to enterprises are adopting subscription-based models, where services are sold by a periodic fee or usage-based charges. These include popular pay-as-you-go and ‘freemium’ models where customers switch from free to premium prices.
- Early this year, Zuora opened its EMEA headquarters in London. After just nine months of operations, the company now counts over 30 customers, including larger enterprises such as News International, Reed Business Information, Touring Club Suisse and VNU Media, and high growth startups such as Ceros, AG, DevelopIQ, IC&S, Jimdo, HTK, MediaSift, SocialGo, and StatPro Group. Zuora has already has signed over €2 billion in contracted subscription revenue from customers across the EMEA region.
- As a result, Zuora will be expanding its presence in the region across the Nordics, Benelux, Germany and France. Leading the business in this region will be VP and General Manager Paul Averill, who is supported by a team across offices in London and Utrecht. Averill has experience across the EMEA TMT sector via companies including EMC, Oracle, StorageTek, Openwave and Cloudmark.
- Tien Tzuo, Founder and CEO of Zuora, said: “We believe the shift to a Subscription Economy business model is as big as the shift to an industrial economy one hundred years ago. Traditional ERP systems like Oracle and SAP were built for manufacturing, not subscription services. Every business in the Subscription Economy must adopt new platforms. My vision is to give 21st-century companies the right infrastructure to be nimble, competitive and grow top-line revenue with new subscription services.”
- Michelangelo Volpi, partner at Index Ventures, said: “We are clearly shifting from a product economy to a Subscription Economy, and Zuora has cemented an early leadership position in helping companies tackle this transformation. I have been amazed at the execution and pace of innovation Zuora has achieved in such a short period of time. Zuora has the team, technology and vision to build the next great software company.”
- David Spray, Senior Project Lead at Touring Club Suisse, said: “As Switzerland’s leading service provider in road and traffic mobility, we are constantly innovating and adapting to new ways our customers are using are services. Zuora is making it easy for us to price and package our offerings for our customers, roll out new service packages quickly, and adapt the portfolio of services we deliver to our customers around the country.”
- Alex Halliday, CEO of social website building company SocialGO, said: “When running a startup, it’s crucial to have your team focus on being really good at one thing. By leveraging Zuora we can keep focused on doing what we do best, and have the flexibility to change course at a moment’s notice.”
About Zuora, Inc.
Zuora is the global leader in subscription commerce and billing, helping companies in every industry transition to the Subscription Economy. Enterprise leaders and high-growth companies alike use Zuora’s multi-tenant cloud platform to launch, scale, and monetize their subscription services. Zuora’s applications work where traditional ERP applications fail: Subscription pricing, quoting, orders, billing, payments, and renewals. Built from the ground up by SaaS industry veterans from salesforce.com, PayPal, and Netsuite, Zuora services innovative customers like Informatica, Tata Communications, Box.net, Ning, Xplornet, Ustream and Reed Business Information. To learn more about Zuora, please visit www.zuora.com.