Pricing operations platform m3ter has secured $14m in its Series A funding round, which will help it launch new analytics features.
Notion Capital, a venture firm aimed at European companies, served as the lead investor. Other commitments came from Insight Partners, Union Square Ventures, and Kindred Capital.
This funding will enable the FinTech company to release new analytics features and expand across the US.
This new analytics tool includes a cost allocator, which will leverage data science techniques to identify gross margin performance on a per-customer basis. This allows businesses to take action on low-margin performance on a per-customer basis, meaning businesses can take action on low-margin clients via pricing adjustments or cost optimisations.
Other tools currently being developers are Pricing Experimenter and Usage Forecaster products. The former allows customers to explore different pricing models in real-time with historic or simulated data to better understand their impact on revenue before implementing them.
The Usage Forecaster provides accurate usage and revenue forecasts over multiple horizons.
m3ter, which launched from stealth in 2022, was founded with the mission of helping software companies go beyond simple recurring subscription models to implement hybrid and usage-based pricing models.
These models have gained popularity thanks to the widespread adoption of product led growth, APIs and automation. The ability to improve margin control, boost customer satisfaction and retention, and expand revenue through costless upselling has also made the pricing strategy increasingly popular.
Despite the opportunities provided by usage-based pricing models, they are tough to implement and manage. m3ter explained this is because existing pricing and billing tools are not well adapted to them. This leaves them ill-equipped to handle pricing and billing with any complexity or scale, which impacts revenue, time to market and customer experience.
m3ter was created to help software companies of all stages and variations of pricing complexity. It directly plugs into existing systems to capture granular usage, pricing and account data at scale, and apply complex pricing configurations to calculate error-free bill items in near real-time.
This data feeds systems throughout the stack, including the billing and finance system, the SaaS product and sales CRM and customer success platforms. Through this, the platform can help to automate billing operations, deliver billing dashboards to end customers and support tailored sales deals.
Since it launched from stealth, m3ter has grown its customer base by 375%. It has also acquired customers across the cloud infrastructure, payments, fraud detection and ID verification sectors.
m3ter CEO and co-founder Griffin Parry said, “In a more challenging software market, SaaS businesses are balancing growth with profitability, making pricing an ever-more valuable lever. Hybrid and usage-based pricing are now firmly in the spotlight because of their ability to deliver better customer experiences while reducing churn and increasing revenue, and as their popularity continues to grow, the opportunity for m3ter is obvious.
“Today’s funding enables us to take our ambitions to the next level, making new pricing models accessible for every software business that needs them.”
The company recently helped database technology company ClickHouse implement usage-based pricing into its cloud offering. It also helped subscription management platform Chargebee to deliver advanced event metering, usage-based pricing and billing capabilities.
In other FinTech news, Contract lifecycle management (CLM) SaaS platform SimpliContract recently closed its pre-Series A round on $3.5m, as it looks to expand in the US and Europe.
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