Founded in 2011 by two brothers, Chargebee is a cloud-based invoicing and subscription service for SaaS companies that allow subscription-driven businesses to manage their subscription renewals and automates recurring billing.
What do they charge for their services? Is there any way to know if they’re charging too much?
Chargebee offers a Saas (Software As A Service) business model. It charges companies monthly fees for using its software.
Here is everything you should know about the business model at Chargebee; how they charge their clients and generate revenues.
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About Chargebee
Chargebee is a service provider that offers business support solutions for companies that sell products and/or provide online content through monthly fees. It supports over 100 types of currencies.
It has easy integration with over 25 different payment gateways including Stripe, PayPal, Braintree, Payza, etc., and supports over 150 countries. Over 3000 active businesses use Chargebee, including companies like Freshworks, Linux Academy, Fujitsu, etc.
With ChargeBee, businesses can easily set up their own payment processing system without having to go through an intermediary service.
Chargebee offers recurring subscriptions for its business clients. Its multi-level plan structure allows companies to generate income from their services. Over 3,000 businesses use the service today.
Business Model of Chargebee
ChargeBee has been gaining popularity for its innovative technologies and user-friendly systems, but they’re not resting on their laurels. Their success is determined by how well they serve their customers.
Companies succeed when they use ChargeBee because what would normally be done manually is automated by the platform’s valuable software. Customers benefit from the platform’s features and benefits by saving time, effort, and money. This has enabled the company to gain recognition within its market.
According to their CEO and Co-founder, they believe in assisting buyers, not sellers. They focus on helping customers understand why they need a particular product or service so they can buy it themselves.
The statistics show that the platform has been extremely successful, as its users have experienced an increase in revenue by approximately 125 percent.
Subscription Management
Businesses can use subscription management tools to keep track of recurring payments from existing clients and attract new ones.
With the Chargebee Subscriptions Management Program, here are some of the many features available:
Pricing Models
One of the main benefits of using ChargeBee for subscription billing is its variety of different price structures. It has tiered prices, quantity or volumetric rates, flat rates, and more.
Testing these models is one of the most important steps for businesses looking to grow revenues. We’re here to help!
Sales and Marketing
With subscription services, you get both support for managing subscriptions and discounts and coupons. You also get help with effective sales and marketing tactics.
Users gain access to increased revenues by creating and tracking discounts and coupons through ChargeBee.
Furthermore, the platform allows for gift subscriptions which let people send each other presents on a recurring basis.
Instead of business owners giving out gifts to their employees every year, they could give them gifts once per quarter or however often they choose to. Giving subscription services is an effective strategy to earn and keep customers in a fun manner.
Self-service Customer Portal
With ChargeBee, customers can manage their own accounts, pause or reactive their subscriptions, and more. They can use their self-service portal to update their account settings or make any other necessary adjustments.
With ChargeBee, businesses don’t have to hire customer service representatives; they just create an account and start accepting payments. It’s easy for both parties involved.
Billing Automation
Businesses often opt for Chargebee’s automatic billing and invoicing services because they make managing tax obligations like over sighting recurrent charges, estimating taxes and fees, and monitoring use easier.
Their innovative software lets them provide an easier method for structuring customer accounts with their hierarchical accounts system.
Recurring Payments
Making money can be fun, but sometimes it’s easier than necessary.
ChargeBee integrates over 23 different gateway providers and supports over 100 different currencies. It also accepts both credit and debit cards, as well as Google Pay and Stripe for mobile transactions.
Accounting & Taxes
The company makes sure that its users comply with their accounting and taxation programs by automating the process. It then charges the user for international shipping.
Additionally, Aayushi Patel of Fishburners reports that his accounting dept. has saved 32 hours per month for the past year by utilizing ChargeBee’s advanced accounting software.
Reporting & Analytics
The Chargebee platform helps companies track customer retention, engagement, growth, and acquisition through its innovative data collection tools.
It also offers custom reports and analysis for any data that the user may deem important to his/her business.
How Does Chargebee Make Money?
During the COVID-19 outbreak, most people remain at home, which has led to increased interest in online shopping.
With the coronavirus pandemic, people are increasingly shopping online, paying their bills online, and entertaining themselves online.
According to a Venture Beat story, companies expect a 12 percent compound annual growth rate from their existing customer base over the next five years.
Paid Subscriptions
ChargeBee makes money from companies that use its paid plans. It also has a free version for small business owners who earn less than $100, 000 per year. Many of these small business owners grow in size and eventually upgrade to a paid account as well.
Launch Plan
ChargeBee has created an affordable subscription service that helps small business owners get off the ground quickly. It includes features like a secure payment gateway, customer management tools, and credit card processing.
This strategy is only applicable to small business owners who earn less than $100,00 in annual revenues. As their businesses grow, they may wish to switch to an upgraded pricing structure. For these businesses, Chargebee starts charging them a $99 per month basis with a 0.5 percent overage charge.
Rise Plan
With this plan, clients pay just $249 per month for unlimited access to all of the features and benefits of the Premium plan plus even more.
It includes additional capabilities including a custom domain, advanced analytics, a user portal, automated tax collection, and multilingual support.
Scale Plan
They offer the same features found in their previous packages for businesses making less than $100,000 per year.
With a $549 monthly subscription fee, you get access to user roles, multiple payment options, advanced invoicing, etc.
Business owners can use this strategy to improve the efficiency of their business software so they can maximize profits.
Enterprise Plan
The Business plan is a customizable plan for small business owners who want to get started quickly without having to pay extra fees.
With this program, users get everything they need from the Scale program plus any additional features they want. They can talk to a Chargebee rep who can help them choose which features they want and give them an estimate of what it would cost.
We’re not just one size fits all. Each plan we offer is designed to fit each individual company’s needs.
Chargebee Funding, Valuation, and Revenue
After raising $800,000 in its first funding cycle, the startup received an additional $5 million in funding to hire more employees to increase user acquisition.
Furthermore, the company received $15 million in Series D financing in 2019. This round of financing was led by notable investors Andreessen Horowitz and Sequoia Capital. ChargeBee would then go on to bring in over $2 billion in annual revenues in the next fiscal quarter.
As time went by, the company attracted more and more attention from various parties who wanted to invest in its future.
ChargingBee raised $125 million in its latest round of funding. Investors included Sapphire Ventures, Tiger Global, and Insight Venture Partners. This brings the total value of the startup up to $1.4 billion. Three years ago, ChargingBee had just $50 million in funding.
After achieving a new high in terms of company value, the company was able for the first time to claim the title of “unicorns” (private companies valued at over $1 billion). It was also declared the 11th most valuable startup in India, making it one of the top ten unicorns in the country.
The company has earned over $230 million in total financing to date. It is increasingly likely that they will exceed that figure in the coming year. And though exact numbers are not known, the company claims to have doubled its revenue in the last twelve months.
Is Chargebee Profitable?
ChargeBee has a well-designed business model with smart revenue sources and sound cost management techniques. They’re focused on making sure businesses of all sizes can run faster, better, and cheaper.
Founded in an Indian apartment, Chargebee has grown into one of the most trusted companies for business payments.
With its newly acquired unicorn status, ChargeBee has proven its business model to be a success.
Conclusion: How Does Chargebee Make Money?
We’ve looked at how ChargeBee earns money, its business models, revenue sources, and everything else related to its business. To summarize, ChargeBee operates on a SaaS (Software As A Service) basis, using subscription fees for its services.
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