Santa Monica-based payments company ReCharge announced Thursday that it has raised a total of $277 million in growth funding to date. The newly minted unicorn was self-funded for over five years before deciding to accept any outside financing. The latest raise, a $227 Series B round on top of a previously undisclosed $50 million Series A, places the company’s valuation at $2.1 billion.
The ReCharge platform provides e-commerce retailers with a subscription billing service to keep customers coming back for more. The company powers subscriptions for over 15,000 merchants including top-selling brands like Oakley, Oatly, Harry’s and Fiji Water.
The pandemic has pushed e-commerce to center stage and as a result, companies like ReCharge have seen exponential growth.
“In this past year, like a lot of those in the e commerce space, we definitely did see some additional growth probably driven by COVID but we actually think it's a combination of multiple factors,” Stephanie Lemmerman, CFO of ReCharge, said in an interview with Built In. “So you’ve got COVID-19, you have a rise of physical subscriptions and you have a rise in direct purchasing and buying.”
ReCharge more than doubled its annual recurring revenue from 2019 to 2020, according to the company. It also processed more than $5.3 billion in transactions over the last year.
“Our merchants are seeing a huge benefit from the addition of subscription offerings to their businesses,” Oisin O’Connor, co-founder and CEO of ReCharge, said in a statement. “Whether you’re a direct-to-consumer or an omnichannel brand, subscription solutions strengthen a brand’s relationship with their customers and make it easy for consumers to make repeat purchases.”
The cash-flow positive platform has doubled its processing volume every year for the past five years, according to the company.
Following the raise, ReCharge will look to grow its fully remote team of more than 300. The company plans to focus on expanding its engineering and product teams as it continues to scale. ReCharge will also look to accelerate its go-to-market functions across sales, marketing and customer success.
“From the beginning, this was a very product-centric and product-focused org and we’re going to continue to do that. The magic is there,” Lemmerman continued. “We’re just going to continue to provide the best product available for our merchants and stay ahead of the curve on that.”
Additional investors include Summit Partners, ICONIQ Growth and Bain Capital Ventures.
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