Zuora, the fastest-growing on-demand subscription billing and payment service, today announced its Series B funding of $15 million.
Shasta Ventures and Lehman Brothers Venture Partners led the round. Zuora's existing investors, Benchmark Capital and Marc Benioff, also participated. Zuora's total funding to date is $21.5 million. Founded by Software-as-a-Service (SaaS) industry veterans from salesforce.com and WebEx, it is Zuora's mission to revolutionize the online subscription industry. The current funding will help to fuel the company's rapid growth, including customer acquisition and new product development.
"Now is the time for investors to act, not sit on the sidelines and watch what happens. The venture community needs to continue to support the innovation and immense potential in Silicon Valley and elsewhere," said Jason Pressman, managing director, Shasta Ventures. "Zuora hits a sweet spot in the on-demand market and we're confident the company will continue to rise above the competition and establish itself as the standard in online subscription billing and payment systems."
In concert with the funding, Pressman joins the Zuora Board of Directors. Prior to Shasta Ventures, he was the fourth employee at Walmart.com, where he was Vice President of Strategy, Business Development and Operations. Zuora's other board members are Scott Thompson, president of PayPal, Peter Fenton of Benchmark Capital, Tien Tzuo, CEO of Zuora, and K.V. Rao, president of Zuora.
"Our vision is to build the PayPal for the subscription world, so that our customers can focus on their core business, not on their infrastructure. As such, Zuora is the only company able to meet the growing demand for a SaaS solution that addresses the entire, recurring billing and payments life cycle," said Tien Tzuo, CEO, Zuora. "The Series B round ensures that we can maintain our rate of growth and momentum and continue our quest to be the gold standard in this market."
Zuora launched its first product, Z-Billing, in May 2008. Z-Billing is the first billing application designed specifically for subscription companies, giving them the flexibility and power to create, manage and grow their business. Earlier this month, Zuora launched its second product, Z-Payments. Z-Payments is a complete payment solution built for subscription businesses and includes the ability to accept PayPal payments. In just six months, more than 45 customers have selected Zuora, including Cloud9 Analytics, Marketo, and Box.net.