RevenueCat is the top subscription management platform for apps that monetize through in-app purchases, and is currently receiving an influx of new funding as it expands into the web. The company completed its $12 million Series C led by Adjacent following the launch of RevenueCat Billing, a new product that allows web app developers to integrate subscription purchases into any website. Later, we plan to support Roku as well.
The timing of this product's launch is noteworthy. The announcement comes amid the implementation of the EU's Digital Markets Act (DMA) regulation, forcing Apple to open up its iPhone and App Store to new perfection. As a result, Apple initially blocked his iPhone web apps (Progressive Web Apps, or PWAs) within the EU for fear that developers would abandon his App Store, but then regulatory pressure The decision was overturned.
But for RevenueCat, the upcoming changes to iOS, not to mention Apple's refusal to lower its default 15% to 30% commission rates, mean more developers are turning to the web to monetize their apps. It means that.
“It could be for progressive web apps or any type of customer who wants to pay outside of the App Store,” says Jacob Eiting, CEO of RevenueCat, describing the new web billing product. “It will be played in all new environments.” [DMA] Rules… it's going to be a very important product enhancement for us,” he said.
The company says it moved in this direction due to inbound interest from developers. Many developers wanted to move their customers to her web and make payments, even if he didn't have a web app.
Stripe already enabled this feature, but what developers lacked was a system specifically designed for consumer subscription apps. Now, even if a developer processes payments through something like his Stripe, they can get data and insights in the same format and within the same dashboard where they already manage their in-app purchase data. This makes it easier to focus on how your subscription app is monetized as a whole, whether your payments come from her web or mobile.
Apple previously didn't allow app developers to drive customers to the web from within their iOS apps, but they can now do so from other channels, such as the developer's website or email to customers. I've been doing it. The EU's DMA rules also require developers to be allowed to direct customers to the web from within mobile apps.
Essentially a web SDK, RevenueCat Billing allows developers to accept subscription payments from any website. This joins other recent product releases designed to help developers grow their revenue, including paywalls, targeting, and experiments. Currently, RevenueCat says he powers over 30,000 app subscriptions and processes over $2 billion in subscriptions annually.
Adjacent's new series C Nico Wittenborn — Series A investors, currently board members) for a total of $12 million. Other investors include Y Combinator, Index Ventures, Volo Ventures, and SaaStr Fund. Prior to this round, RevenueCat had raised his $56 million, bringing his total raised to over $68 million.
In addition to powering new products, this funding will also help RevenueCat expand into new markets, including Japan and South Korea.
In a statement about the funding and expansion, Miguel Carranza, CTO and co-founder of RevenueCat, said: “Our main competition is 'building the monetization technology ourselves.' said. “In the US, we have done a good job of educating developers, product people, marketers and CEOs about the challenges of building in-house. The default remains to dedicate valuable resources to something that offers no differentiation or value. Later this year, we will expand language and local currency support and work with local technology partners and distributors. We are investing in these regions by deepening our relationships and recruiting within the market wherever possible,” he added.
Image credit: RevenueCat
Although RevenueCat is not yet a profitable company, Eiting says profitability is always on the horizon. The company still has the funds it raised in 2021, with more than $40 million currently in the bank on top of its roughly $20 million ARR. The combustion rate has also been halved since last summer.
“There are a lot of things you can build by putting capital into it, but doing it on a profit basis will only slow us down at the moment. So while we have access to capital, it won't always be the case. “The best thing for customers and investors is to acquire more capital and deploy it faster,” he told TechCrunch.
“RevenueCat is too important to too many apps, putting the company at risk of heading towards a financial cliff. This goes against the common narrative of how venture-backed companies should be built. Maybe, but our investors are with us and know that Miguel and I are leading the company to maximize value for developers. The more money we make, the more money our investors make,” the CEO added in a blog post. “To that end, we still aim to take the company public within this decade,” he said.