RevenueCat CEO Jacob Eiting revealed that the company has raised $12 million in funding, led by Adjacent. Other investors who joined the round include Y Combinator, Index Ventures, Volo Ventures, and SaaStr Fund. Nico Wittenborn of Adjacent will join the board. RevenueCat had raised $56 million before this funding round, bringing its total to over $68 million.
The company also revealed a new product called RevenueCat Billing, which enables developers to integrate subscription purchases into their websites. While the company is now profitable yet as this is by design, it still has over $40 million in the bank and the company now has $20 million in annual recurring revenue (ARR). Plus, the company has significantly reduced its burn rate.
RevenueCat is now being used by over 32,000 apps. This includes Notion, VSCO, StockTwits, Buffer, Reuters, and Goodnotes.
KEY QUOTES:
RevenueCat is too important to too many apps to risk the company driving towards a financial cliff. This may be counter to the prevailing narrative of how venture backed companies should be built, but our investors are aligned with us and know that Miguel and I are leading the company to maximize the value for developers. Investors make more money when developers make more money. To that end, we’re still aiming to take the company public in this decade. We have a very long way to go, but I still believe that a profitable, growing, public RevenueCat is the best long term ownership structure for the company. Public markets bring discipline, and RevenueCat is too important of a company not to have good discipline.
“We are continuing to invest in actually helping developers make more money with tools like Experiments, Targeting, Paywalls and more. We have more ideas than we have the time or talent to implement, and having a few extra nickles will allow us to build more of the things you’re asking for sooner. We aim to both make the easy things automatic (churn recovery) and make the hard things easy (better tools to find out what resonates with your users).”
- Jacob Eiting
