Zuora, a leading monetization suite for modern businesses, announced its planned acquisition of metering and rating solution Togai, enhancing its usage-based offerings. With Togai’s low-code builder and developer-friendly interface to configure metering and rating of raw events quickly, the acquisition will help Zuora unite developers and finance teams to launch, iterate, and adapt usage-based models.
The growth of generative AI (GenAI) technologies has caused companies to turn to usage-based business models but added complexity and cost still prevent many companies from effectively monetizing their offerings. And developers often have sole access to product usage data. They are left to manage it with inadequate, custom-coded systems, leaving finance teams unable to access the information they need to invoice and recognize revenue accurately.
Togai also enhances Zuora’s monetization suite, enabling developers to collaborate with finance teams to define and operate any pricing model with a solution easily plugged into their existing data stack. Its metering system facilitates event ingestion from various sources, and its flexible rating engine enables unique ways to package and bundle offerings.
Developers can use Togai’s self-service interface in minutes. It can support up to a billion events per day and reduce customer disputes with fully auditable and traceable usage data. The Revenue Simulator and pre-built CRM connectors also alert sales teams of upcoming upsell and renewal opportunities.
Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan launched Togai in 2022, and they will join Zuora with Togai employees. And after the deal’s closing, Togai’s metering and rating solution will become a part of Zuora’s existing product suite alongside Zuora Billing, Zuora Revenue, Zuora Payments, Zephr, and Zuora Platform. Plus, it will be available as a new standalone usage offering and with Zuora’s existing consumption solution. The deal also strengthens Zuora’s ability to enable Total Monetization, helping companies evolve their offerings to align with customer demand through a mix of innovative business models.
The deal is expected to close in early May 2024 and is subject to customary approvals and closing conditions. And Foros is acting as financial advisor and Freshfields Bruckhaus Deringer as legal advisor to Zuora. QED Corporate Advisors is acting as financial advisor and Argus Partners as legal advisor to Togai.
KEY QUOTES:
“Togai’s sophisticated metering and rating extends Zuora’s market-leading monetization suite to accelerate usage-based models. Together, we will be strategically positioned to provide the right solutions for developers and finance teams to power the next generation of monetization.”
– Tien Tzuo, Founder and CEO at Zuora
“Developers spend months building internal metering and rating systems, which can quickly evolve into a dedicated team of engineers as companies realize that building a usage-based billing system is not a one-time effort. Togai makes it possible to go live in hours with an out-of-the-box, flexible solution to model any type of pricing and reliably scale. Combining Zuora and Togai is the right decision to bring together deep metering and rating with the scale of Zuora’s end-to-end monetization technology.”
– Abhishek Rajagopal, CEO and Co-founder at Togai
