REDWOOD CITY, CA--(Marketwire -11/16/11)- Zuora, the subscription commerce and billing leader, today announced that it has received $36 million in a Series D round of funding. The round was led by Index Ventures with additional investment from Greylock Partners and a personal investment from Dave Duffield, founder and co-CEO, Workday. Zuora's existing investors also participated, including Benchmark Capital, Redpoint Ventures, Shasta Ventures, Tenaya Capital and Marc Benioff, chairman and CEO, salesforce.com. To date, the company has raised $82.5 million in funding.
Zuora will use the proceeds to fuel international and product line expansions to meet the burgeoning growth of the Subscription Economy around the world. As a first step, Zuora announced it is rapidly expanding its European presence across the Netherlands, Germany, France and Ireland with new offices, staff and strategic partnerships. Zuora has already signed over EUR 2 billion ($2.7 billion) in contracted subscription revenue with customers across the EMEA region.
Concurrent with the funding, Michelangelo Volpi, partner at Index Ventures, has joined the Zuora board of directors. Before joining Index Ventures, Volpi led Cisco's global expansion and business development efforts as its chief strategy officer. He currently serves on several boards of directors, including Swedish mobile giant Ericsson.
"We are clearly shifting from a product economy to a Subscription Economy, and Zuora has cemented an early leadership position in helping companies tackle this transformation," said Volpi. "I have been amazed at the execution and pace of innovation Zuora has achieved in such a short period of time. Zuora has the team, technology and vision to build the next great software company."
The Subscription Economy and Zuora Go Global
In 2007, the founders of Zuora predicted a fundamental shift from the 20th century product-based, "buy once" economy to a services-based economy based on recurring subscriptions. Today, the Subscription Economy is fueling massive change across communications, media, technology, consumer services and other billion dollar industries that are embracing subscription revenue models.
In four years, Zuora has enabled this transformation by creating a comprehensive platform built for subscription businesses, pioneering the subscription commerce market and becoming the leading provider of solutions for the Subscription Economy. Zuora's key accomplishments in its first four years include:
- Built one of the fastest growing private enterprise software companies, including more than 100% annual growth in bookings, 10 deals over $1M in the last 18 months, and doubling the company size in 2011 to nearly 200 employees.
- Trusted to run the mission-critical revenue operations of large enterprise customers, including: AAA No. California, Nevada and Utah, Dell, Concur, IBM Coremetrics, Informatica, News International, Reed Business Information, Qualcomm, Ricoh, Tata Communications, Touring Club Suisse, TripAdvisor, VNU Media, Vocus, and Xplornet.
- Chosen by emerging Subscription Economy leaders including: Box, Branchout, Cloud9, DocuSign, Marketo, MuleSoft, Ning, Ooyala, salesforce.com's Radian6 division, Splunk, Symplified, TimeTrade, Ustream, Xactly, Yammer and ZenDesk.
- Established partnerships with many of the leaders in cloud computing and commerce, including: Microsoft, Netsuite, PayPal, salesforce.com, VMware, and Workday.
- Delivered new technology and capabilities to customers for 34 straight months, an unparalleled pace of innovation in the technology industry.
The Next Mission: Disrupting the ERP Status Quo
As the Subscription Economy pervades industry after industry, businesses recognize they require a different set of core systems that optimize this new business model. New subscription businesses are adopting subscription commerce from the start. But large enterprises are finding that ERP systems from SAP, Oracle and others are outdated, outmoded and ineffective in supporting subscription business models.
As a result, companies of all sizes are selecting Zuora as their system of record to drive business model innovation, to solve subscription complexity and to reach their potential in the Subscription Economy. In addition to its international expansion, Zuora will use its new funding to significantly invest in core research and development to broaden its solution footprint, delivering an extended product line including subscription commerce, subscription billing and subscription finance, and liberating companies from the constraints of their obsolete enterprise systems.
"There is a clear global mandate for companies to shift rapidly to the services-based Subscription Economy," said Zuora co-founder and CEO Tien Tzuo. "The product-focused, industrial economy and the systems that support it are part of the past. It's time for a new system for the Subscription Economy. More and more, companies are turning to Zuora to drive their future. This funding will fuel our ability to scale faster and to free companies from their dependence on SAP and Oracle."
About Zuora, Inc.
Zuora is the global leader in subscription commerce and billing, helping companies in every industry transition to the Subscription Economy. Enterprise leaders and high-growth companies alike use Zuora's multi-tenant cloud platform to launch, scale, and monetize their subscription services. Zuora's applications work where traditional ERP applications fail: Subscription pricing, quoting, orders, billing, payments, and renewals. Built from the ground up by SaaS industry veterans from salesforce.com, PayPal, and Netsuite, Zuora services innovative customers like Informatica, Tata Communications, Box, Ning, GigaOm, Xplornet, Ustream, and Reed Business Information. To learn more, please visit www.zuora.com.