ReCharge also plans to “broaden” its acquisition scope so that it can “accelerate” its time-to-market in certain domains, according to O’Connor, and of course build upon its products and services. It plans to continue its expansion into other e-commerce platforms such as BigCommerce, Salesforce Commerce Cloud and Magento, and outside of North America into other geographic markets, starting with Europe. ReCharge plans to use its fresh capital to accelerate hiring in both R&D (engineering and product) and go-to-market functions such as sales, marketing and customer success.
“We believe there is a combination of factors at play: the pandemic, the rise of physical subscriptions and the rise of direct-to-consumer buying.” “Overall, we saw a 91% subscriber growth in 2020 across the board in all categories of subscriptions,” O’Connor told TechCrunch. For example, ReCharge saw beauty care products subscribers grow by 120% last year. He was surprised to see that growth also extend beyond the most obvious categories. “Certain categories such as food & beverage and pet foods were some of the fastest growing segments in total subscriber count, with 100% and 147% increases, respectively, as non-discretionary spending shifted online.” “We saw many brick and mortar stores, such as Oatly, offer their products through subscriptions as a result of the pandemic in 2020,” O’Connor told TechCrunch. ReCharge also has 328 employees, up from 140 in January of 2020. But even prior to the pandemic, it had doubled its processing volume each year for the past five years and has processed over $5.3 billion in transactions since its 2014 inception. Customers include Harry’s, Oatly, Fiji Water, Billie and Native. The startup has 15,000 customers and 20 million subscribers across 180 countries on its platform. ReCharge’s ARR grew 146% in 2020, while revenue grew over 136% over the same period, according to co-founder and CEO Oisin O’Connor, although he declined to reveal hard numbers. The company has some impressive growth metrics, no doubt in part driven by the COVID-19 pandemic’s push to all things digital. It also aims to help these brands, primarily direct to consumer companies, grow by providing them with ways to “easily” add subscription offerings to their business with the goal of turning one-time purchasers “into loyal, repeat customers.”
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Specifically, ReCharge’s cloud-based software is designed to give e-commerce merchants a way to offer and manage subscriptions for physical products. Over the years, the company’s SaaS platform has evolved from a subscription billing/payments platform to include a broader set of offerings aimed at helping e-commerce businesses boost revenues and cut operating costs. With this round, ReCharge has raised a total of $277 million in funding. And, it’s currently cash flow positive, according to company execs.
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Notably, Santa Monica, California-based ReCharge was bootstrapped for several years before raising $50 million in a previously undisclosed Series A from Summit Partners in January of 2020. Summit Partners, ICONIQ Growth and Bain Capital Ventures provided the capital. ReCharge, a provider of subscription management software for e-commerce, announced today that it has raised $227 million in a Series B growth round at a $2.1 billion valuation.
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