TLDR: RevenueCat, a leading platform for managing consumer app monetization, has successfully raised $50 million in a Series C funding round led by Bain Capital Ventures. This latest investment brings their total Series C funding to $62 million and overall fundraising to $100 million, valuing the company at $500 million post-money. The company plans to significantly scale product development, make strategic hires, and expand its offerings, particularly in response to growing demand from AI, gaming, and productivity sectors.
San Francisco, CA – RevenueCat, a pivotal player in the mobile app economy, has announced the successful closure of a $50 million Series C funding round. The investment was spearheaded by Bain Capital Ventures, with notable participation from existing investors including Index Ventures, Y Combinator, Adjacent, Volo Ventures, and SaaStr Fund. This latest capital injection extends a previous $12 million Series C round, bringing the total Series C funding to $62 million and the company’s overall fundraising to $100 million. The company is now valued at an impressive $500 million post-money.
Founded in 2017 by Jacob Eiting and Miguel Carranza, RevenueCat has established itself as a critical infrastructure provider, simplifying subscription management for mobile applications. The platform empowers developers to effortlessly implement and oversee recurring payments without the need for complex coding. Currently, RevenueCat powers subscriptions in over 70,000 apps, with one in three new subscription apps leveraging its infrastructure.
The newly secured funds are earmarked for aggressive expansion, focusing on scaling product development and making strategic hires. RevenueCat aims to address a broader spectrum of challenges faced by mobile developers. A key strategic area includes assisting app makers in navigating the adoption of web-based billing, a growing necessity following the recent Apple-Epic antitrust ruling which allows external payment options in iOS apps. The company already has over 2,000 developers testing its web billing tool.
Significantly, Artificial Intelligence (AI) is a major driver for RevenueCat’s future growth. The company has observed a surge in demand from AI-based applications, gaming, and productivity sectors. Notably, AI-based apps constitute 20% of RevenueCat’s top 20 client applications, commanding higher fees and conversion rates compared to traditional apps. RevenueCat already serves prominent AI platforms, including OpenAI’s ChatGPT app, and has partnered with OpenAI to facilitate ChatGPT’s mobile deployment. The rise of generative AI has created substantial opportunities for RevenueCat to support startups in managing complex subscription tiers, underscoring investor confidence in the ‘picks and shovels’ approach to the burgeoning AI gold rush. The company’s platform has demonstrated its value by saving clients, including AI startups, significant engineering resources, with one company reporting over 6,000 engineering hours saved annually by utilizing RevenueCat’s specialized solutions instead of building in-house payment systems.
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While RevenueCat competes with broader payment platforms like Stripe, Recurly, and Chargebee, its offering is uniquely purpose-built for mobile app developers, providing a unified backend solution that automates receipt validation, manages customer data, and offers robust tools for growth and optimization of billing, analytics, and conversion for various in-app purchases.
