Zuora Raises $6.5M, Joins SaaS Billing Bonanza

By Stacey Higginbotham | Thursday, March 13, 2008 | 12:01 AM PT | 5 comments |

A couple of startups are trying to become the PayPals of the business world, offering their enterprise clients a way to measure and invoice without resorting to expensive custom-built billings software that they have to host themselves. The latest of these, Zuora of Redwood City, Calif., has secured $6.5 million in Series A money from Benchmark and counts Coremetrics as one of its first customers. Tien Tzuo, CEO of Zuora, says the money will go toward building out the product and hiring a sales team.

In the age of the cloud, you can outsource everything. To me, outsourcing a billing system for a software-as-a-service provider seems like a hardware vendor outsourcing its inventory management, but I suppose just-in-time manufacturing has worked out for the hardware guys. So I’m trying to push aside my doubts about these new companies offering outsourced billing for anyone providing subscription services.

In addition to Zuora there is Austin, Texas-based eVapt, which doesn’t provide help in setting pricing the way Zuora does, but also recently closed a small $250,000 seed round. Ranjit Nayak, founder and vice president of marketing at eVapt, says The Economist Group is using eVapt’s service to track and invoice subscriptions and articles purchased on its sites. Another player in the space, Ireland’s LeCayla, was purchased in February by SaaS applications host OpsSource.

Right now, these guys are targeting SaaS vendors because they clearly understand the model, but both Tzuo and Nayak point to other subscription service providers — from online gaming to NetJets — as examples of companies that could use their services to get rid of another layer of complexity in their business.

Digg

Comments (5)

Link to this article using http://om.bit.ly/YT8MO
  • It is important to clarify that setting pricing for SaaS and subscription offerings is a function of the business service provider. eVapt has already built the necessary software infrastructure to create subscription based contracts once the price is set by the business. There are companies like Austin based Mimiran which provide consulting help in setting the right price for business services.

      Reply
  • @Ranjit, eVapt doesn’t help with setting price, but Zuora does.

      Reply
  • You left out Aria Systems billing solution, ariasystems.com, from your discussion. In our research they had the most complete overall solution and exceptional support.

    Dave DiDonato — 3:09 PM on April 8, 2008
      Reply
  • Dave, you’re right. I’m chatting with them later this week, tho.

      Reply
  • Have you looked at SubscriptionDNA.com? Definitely an up and coming solution that looks like they have a real interesting offer.

    Joe Danning — 8:33 PM on November 4, 2009
      Reply

Linkbacks (2)

Subscribe to comments feed

Leave a Reply


Post to GigaOM with your Facebook account

Editorial Masthead

Sebastian Rupley
Editor in Chief
Carolyn Pritchard
Managing Editor
Celeste LeCompte
Special Projects Editor
Desiree DeNunzio
Copyeditor
Om Malik
Senior Writer
Stacey Higginbotham
Staff Writer
Ryan Lawler
Staff Writer
Wagner James Au
Contributing Editor
Liz Gannes
Staff Writer
Chris Albrecht
Staff Writer
Katie Fehrenbacher
Staff Writer
Josie Garthwaite
Staff Writer
Close
E-mail It