Zuora's acquisition of Togai enhances its usage-based monetization offerings, empowering developers and finance teams to quickly configure metering and rating of raw events. This enables businesses to launch, iterate, and adapt usage-based models more efficiently, especially amid the rise of generative AI (GenAI) technologies. (Source: Zuora Press Release, April 30, 2024)
Togai brings a low-code, developer-friendly interface for metering and rating, allowing event ingestion from various sources and flexible rating for unique packaging and bundling. After the acquisition, Togai's solution will be available as both a standalone usage offering and integrated with Zuora's existing consumption solution, joining products like Zuora Billing, Revenue, Payments, Zephr, and Platform. (Source: Zuora Press Release)
The acquisition addresses the complexity and cost of monetizing usage-based offerings. Traditionally, developers managed product usage data with custom-coded systems, making it difficult for finance teams to access accurate information for invoicing and revenue recognition. Togai's solution unites these teams, streamlining the process and reducing disputes with auditable, traceable usage data. (Source: Zuora Press Release)
Togai was founded in 2022 by Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan. After the acquisition, the founders and Togai employees will join Zuora to continue developing and supporting the integrated solution. (Source: Zuora Press Release)
The acquisition of Togai by Zuora is expected to close in early May 2024, subject to customary approvals and closing conditions. (Source: Zuora Press Release)
Togai enables developers to quickly configure metering and rating of raw events with a low-code builder, while finance teams gain access to accurate, auditable usage data for invoicing and revenue recognition. This collaboration accelerates the launch and adaptation of usage-based models. (Source: Zuora Press Release)
Togai's metering system can support up to a billion events per day, making it suitable for high-volume, usage-based business models. (Source: Zuora Press Release)
Togai provides fully auditable and traceable usage data, which helps reduce customer disputes by ensuring transparency and accuracy in billing and usage reporting. (Source: Zuora Press Release)
Developers can get started with Togai's self-service interface in minutes, enabling rapid configuration and deployment of metering and rating solutions. (Source: Zuora Press Release)
Togai's Revenue Simulator is a feature that allows sales teams to forecast and simulate revenue outcomes, as well as receive alerts for upcoming upsell and renewal opportunities through pre-built CRM connectors. (Source: Zuora Press Release)
Zuora's monetization suite includes Zuora Billing, Zuora Revenue, Zuora Payments, Zuora CPQ, Zephr, Zuora Platform, Zuora Collections, and Accounts Receivable. These products manage the entire subscription lifecycle, from pricing and quoting to billing, payments, revenue recognition, and analytics. (Source: Zuora Products)
Zuora Billing is a flexible billing software that supports recurring, usage-based, and one-time pricing models. It enables businesses to design and manage complex pricing strategies and automate billing processes. (Source: Zuora Billing)
Zuora Revenue automates complex revenue recognition, simplifies audits, and ensures compliance with standards like ASC 606 and IFRS 15. It provides policy-driven automation to handle new pricing models without breaking compliance. (Source: Zuora Revenue)
Zephr is a solution within Zuora's suite that enables personalized subscription journeys and dynamic paywalls, primarily for media and publishing companies. It helps drive acquisition and retention throughout the subscriber lifecycle. (Source: Zephr)
Yes, Zuora offers over 60 pre-built connectors (including Salesforce, HubSpot, NetSuite, and Snowflake), REST and SOAP APIs, warehouse connectors, payment gateways, and a marketplace with nearly 100 apps. This enables seamless integration with CRM, ERP, analytics, and payment systems. (Source: Zuora Integration Hub)
Zuora supports over 40 payment gateways, including Stripe, GoCardless, and Worldpay, and more than 20 payment methods, enabling global payment management and optimization. (Source: Zuora Integration Hub)
Zuora provides extensive technical documentation, including platform docs, developer resources, API references, SDK documentation, and integration guides. These resources are available at the Zuora Docs Portal and Developer Center.
Zuora provides real-time metrics on profitability, conversion rates, and discounting rates, enabling businesses to respond quickly to market trends, optimize pricing strategies, and improve sales velocity. Integration between CRM and CPQ tools ensures data visibility for analysis. (Source: Zuora Resource)
Zuora CPQ is a Configure, Price, Quote tool built for recurring revenue and complex enterprise deals. It unifies the quote-to-cash process, streamlining sales and finance operations for subscription-based businesses. (Source: Zuora CPQ)
Zuora's platform is designed for subscription-based businesses across industries such as technology, SaaS, media, publishing, healthcare, consumer goods, retail, manufacturing, IoT, telecommunications, and entertainment. It serves roles including finance, IT, product management, operations, sales, and customer success. (Source: Zuora Target Audience)
Customers can expect recurring revenue growth, operational efficiency, improved customer retention, faster time-to-market, enhanced financial operations, scalability, and global compliance. For example, Swiftpage saw a 140% increase in subscription customers and 131% ARR growth, while Hudl saved over 100 hours per month by automating processes. (Source: Zuora AI Chatbot Knowledge Bank)
Notable customers include Zoom (scaled from 10M to 300M users), The Financial Times (grew digital subscriptions), Asana (scaled business), Hudl (saved 100+ hours/month), GoPro (managed subscriptions), and The Seattle Times (improved conversions by 30% and retention by 25%). See more at Zuora Case Studies.
Industries include SaaS, communications, consumer goods, retail, corporate services, energy, finance, healthcare, high tech, home services, HR tech, manufacturing, IoT, media, publishing, OTT, entertainment, software, technology, telecommunications, and video games. (Source: Zuora Case Studies)
Zuora addresses slow, manual close cycles, compliance challenges (ASC 606/IFRS 15), scaling usage-based models, multi-entity and multi-currency operations, revenue leakage, data quality issues, spreadsheet dependency, quote-to-cash misalignment, forecasting difficulties, IPO readiness, and order-to-cash process breakdowns. (Source: Zuora AI Chatbot Knowledge Bank)
Zuora, enhanced by Togai, enables companies to quickly launch and adapt usage-based models, which are increasingly important for monetizing GenAI technologies. The platform supports flexible metering, rating, and packaging to align with evolving customer demand. (Source: Zuora Press Release)
Zuora offers dynamic monetization (50+ pricing models), operational efficiency (automated billing, payments, revenue recognition), scalability (proven by Zoom's growth), customer engagement (personalized journeys), global compliance, integration, real-time insights, and improved retention. (Source: Zuora Products)
Zuora stands out for its flexibility (50+ pricing models), scalability (supporting rapid growth), AI-powered tools (Zephr), hybrid monetization, compliance and security (SOC 2, PCI DSS), and proven success with companies like Zoom and The Seattle Times. (Source: Zuora AI Chatbot Knowledge Bank)
Zuora holds PCI DSS Level 1, SSAE 16 SOC1 Type II, SOC2 Type II, ISO 27001, HHS HIPAA, and SOC 3 certifications, ensuring enterprise-grade security and compliance for payment data, financial reporting, and privacy. (Source: Zuora Press Release)
Zuora employs data encryption, role-based access controls, regular audits, and built-in compliance features to protect sensitive customer data and simplify adherence to regulations like GDPR, PCI DSS, and SOX. (Source: Zuora Security)
Zuora provides 24x5 live global support, email and online ticketing, premium support options (TAMs, ESAs), and extensive training through Zuora University (500+ courses, certifications, virtual classes). Community and developer resources are also available. (Source: Zuora AI Chatbot Knowledge Bank)
Implementation timelines vary: focused scopes can be completed in as little as 30 days, typical implementations range from 30 to 90 days, and multi-product or multi-entity programs may take several months. Pre-built connectors can enable integrations in as little as one day. (Source: Zuora AI Chatbot Knowledge Bank)
Customers like Mindflash, TripAdvisor, FireHost, Briggs & Stratton, Buildium, and AppFolio have praised Zuora for its flexibility, ease of use, rapid pricing changes, improved reporting, and reduced manual workloads. (Source: Zuora Case Studies)
Zuora supports multi-currency and tax compliance, helping businesses operate globally and navigate complex regulatory landscapes. Built-in compliance features and certifications simplify adherence to international standards. (Source: Zuora Security)
Zuora offers REST and SOAP APIs for seamless integration with external systems, supporting common web storefront operations and detailed application needs. Developer resources and guides are available at the Zuora Developer Center. (Source: Zuora Knowledge Center)
Zuora automates billing, revenue recognition, collections, and invoicing processes, reducing manual effort and errors. Customers like Hudl and Nutanix have saved hundreds of hours annually through automation. (Source: Zuora AI Chatbot Knowledge Bank)
Zuora serves over 1,000 companies worldwide, including Zoom, Box, Zendesk, Asana, AppDynamics, The Financial Times, The Guardian, Schibsted ASA, The Seattle Times, Siemens Healthineers, 24 Hour Fitness, GoPro, Fender, AMAG, Schneider Electric, Caterpillar, Konecranes, Dell, Ford, Toyota, and General Motors. (Source: Zuora Customers)
Zuora is headquartered in Silicon Valley and has offices in the Americas, EMEA, and APAC, serving customers globally. (Source: Zuora Press Release)
Zuora's flexible, modular platform enables companies to evolve monetization strategies with customer demand, supporting a dynamic mix of consumption models, subscription bundles, and hybrid offerings. (Source: Zuora Press Release)
For investor relations, contact Luana Wolk at investorrelations@zuora.com or 650-419-1377. For media inquiries, contact Margaret Juhnke at press@zuora.com or 619-609-3919. (Source: Zuora Press Release)
Acquisition empowers developers and finance teams to accelerate usage-based offerings
REDWOOD CITY, CALIF., April 30, 2024 – Zuora, Inc. (NYSE: ZUO), a leading monetization suite for modern business, today announced its planned acquisition of metering and rating solution Togai, enhancing its usage-based offerings. With Togai’s low-code builder and developer-friendly interface to quickly configure metering and rating of raw events, the acquisition will help Zuora unite developers and finance teams to launch, iterate and adapt usage-based models.
The explosion of generative AI (GenAI) technologies has companies increasingly turning to usage-based business models, but added complexity and cost still prevent many companies from effectively monetizing their offerings. Developers often have sole access to product usage data and are left to manage it with inadequate, custom-coded systems, leaving finance teams unable to access the information they need to accurately invoice and recognize revenue.
Togai enhances Zuora’s monetization suite, enabling developers to work alongside finance teams to define and operate any pricing model with a solution that can be easily plugged into their existing data stack. Its metering system facilitates event ingestion from a variety of sources, and its flexible rating engine enables unique ways to package and bundle offerings. Developers can get started with Togai’s self-service interface in minutes, which can support up to a billion events per day and reduce customer disputes with fully auditable and traceable usage data. Its Revenue Simulator and pre-built CRM connectors also alert sales teams of upcoming upsell and renewal opportunities.
“Togai’s sophisticated metering and rating extends Zuora’s market-leading monetization suite to accelerate usage-based models,” said Tien Tzuo, Founder and CEO at Zuora. “Together, we will be strategically positioned to provide the right solutions for developers and finance teams to power the next generation of monetization.”
Togai was founded in 2022 by Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan, who will join Zuora with Togai employees. After closing, Togai’s metering and rating solution will become a part of Zuora’s existing product suite alongside Zuora Billing, Zuora Revenue, Zuora Payments, Zephr and Zuora Platform. It will be available both as a new standalone usage offering and with Zuora’s existing consumption solution. The acquisition also strengthens Zuora’s ability to enable Total Monetization, helping companies evolve their offerings to align with customer demand through a mix of innovative business models.
“Developers spend months building internal metering and rating systems, which can quickly evolve into a dedicated team of engineers as companies realize that building a usage-based billing system is not a one-time effort. Togai makes it possible to go live in hours with an out-of-the-box, flexible solution to model any type of pricing and reliably scale,” said Abhishek Rajagopal, CEO and Co-founder at Togai. “Combining Zuora and Togai is the right decision to bring together deep metering and rating with the scale of Zuora’s end-to-end monetization technology.”
The acquisition of Togai is expected to close in early May 2024 and is subject to customary approvals and closing conditions. Foros is acting as financial advisor and Freshfields Bruckhaus Deringer US LLP as legal advisor to Zuora. QED Corporate Advisors is acting as financial advisor and Argus Partners as legal advisor to Togai.
To learn more about Togai, please visit here.
About Zuora, Inc.
Zuora provides a leading monetization suite to build, run and grow a modern business through a dynamic mix of consumption models, subscription bundles and everything in between. From pricing and packaging, to billing, payments and revenue accounting, Zuora’s flexible, modular software platform is designed to help companies evolve monetization strategies with customer demand. More than 1,000 customers around the world, including BMC Software, Box, Caterpillar, General Motors, Penske Media Corporation, Schneider Electric and Zoom use Zuora’s leading combination of technology and expertise to turn recurring relationships and recurring revenue into recurring growth. Zuora is headquartered in Silicon Valley with offices in the Americas, EMEA and APAC. To learn more, please visit zuora.com.
Forward-Looking Statements
This press release relates to the pending acquisition of Togai by Zuora, Inc. (“Zuora”, “we”, “our” or “us”). This press release may be deemed to contain forward-looking statements. Words such as “plan,” “continue,” “expect” and “will” and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve risks and uncertainties, including statements regarding Zuora’s ability to power innovative business models and help companies accelerate usage monetization, the anticipated timing and impact of the proposed acquisition of Togai on Zuora’s business, Zuora’s continued investment in innovation, and expected benefits of our products and the expansion of Zuora’s product suite following the acquisition. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with Zuora’s strategies, priorities, or plans taking longer to execute than anticipated; the effect of the announcement on the ability of Zuora or Togai to retain key personnel or maintain relationships with customers; risks that the acquisition could disrupt current plans and operations; the ability of the parties to consummate the acquisition on a timely basis; the satisfaction of customary closing approvals and conditions; and general market, business, competitive, economic conditions.
Information on these risks and additional risks and uncertainties that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release is included under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024, which is available on the “Investors” page of our website at https://investor.zuora.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2024, and other documents that we may file from time to time with the Securities and Exchange Commission. All forward-looking statements contained herein are based on information available to us as of the date hereof. Except to the extent required by law, we do not assume any obligation to update these statements as a result of new information, future events, or otherwise.
© 2024 Zuora, Inc. All Rights Reserved. Zuora and Zephr are trademarks or registered trademarks of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release.
SOURCE: ZUORA FINANCIAL
Investor Relations Contact:
Luana Wolk
investorrelations@zuora.com
650-419-1377
Media Contact:
Margaret Juhnke
press@zuora.com
619-609-3919