RevenueCat, a leading subscription management platform for apps that monetize through in-app purchases, has secured a new funding round of $12 million Series C as it expands its services to the web. The funding round was led by Adjacent following the introduction of RevenueCat Billing, a new product that enables web app developers to incorporate subscription purchases on any website, and will later expand to support Roku.
The launch of this new product comes at a critical time with the enforcement of the EU's Digital Markets Act (DMA) regulation, which is compelling Apple to open up competition for the iPhone and the App Store. This has prompted Apple to temporarily block iPhone web apps (Progressive Web Apps, or PWAs) in the EU, before reversing the decision due to regulatory pressure.
With changes on the horizon for iOS and Apple's static commission rates, more developers are turning to the web to monetize their apps.
RevenueCat CEO Jacob Eiting commented on the new web billing product, stating "It could be for progressive web apps or any customer looking to process payments outside of the App Store. It will comply with the new [DMA] rules and represent a significant product expansion for us."
The company decided to move in this direction due to the high demand from developers who wanted to transition their customers to web payments even if they did not have a web app.
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While Stripe already offers similar functionality, developers were lacking a system tailored specifically for consumer subscription apps. RevenueCat Billing is designed to provide developers with data and insights in a unified dashboard format, allowing them to focus on the overall monetization of their subscription apps, whether from web or mobile platforms.
Even though Apple has traditionally prohibited app developers from redirecting customers to the web from within iOS apps, developers can still direct users to the web from other channels like their website or customer emails. The EU's DMA rules are expected to facilitate this redirection from within mobile apps as well.
RevenueCat Billing, essentially a web SDK, enables developers to accept subscription payments from any website, enhancing RevenueCat's existing product offerings. The new $12 million Series C round led by Adjacent, with participation from other investors, will support new market expansions such as Japan and South Korea, along with the development of additional products.
CTO and co-founder Miguel Carranza highlighted the company's focus on educating developers and businesses on the drawbacks of building in-house monetization technology, emphasizing RevenueCat's mission to provide value and solutions to its users. The company is planning to expand support for languages and local currencies and deepen partnerships with technology providers to further support its customers globally.
Although RevenueCat is not yet profitable, CEO Jacob Eiting is optimistic about the company's future profitability. With a healthy cash reserve of over $40 million and around $20 million in annual recurring revenue, the company has managed to reduce its burn rate and is focused on deploying capital efficiently to drive growth and value for its customers and investors.
Eiting stated, "RevenueCat is essential to many apps, and we are committed to maximizing value for developers and investors. Our ultimate goal is to take the company public in this decade, aligning ourselves with the interests of our stakeholders to ensure mutual success."
