1:50:04 AM PDT - Friday, September 30th, 2022

Ratio bags $411M in equity, credit for flexible subscription payment models  

By Editor - Thu Sep 15, 6:46 am

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Fintech startup Ratio secured $411 million in equity and debt funding to continue developing what it calls “a new flavor” of buy now, pay later that combines payments, predictive pricing, financing and a quote-to-cash process. Co-founder and CEO Ashish Srimal founded Ratio in 2021 with CTO Mason Blake, and they have been heads down ever since working on the company’s concept, which is to help SaaS and technology companies tap into the $1.5 trillion subscription market for recurring revenue. Srimal was previously founder and CEO of sales mobile assistant startup SmarterMe, while Blake was formerly CEO of B2B legal marketplace UpCounsel, a company that exited to LinkedIn . Their new funding includes $11 million in venture dollars raised in late 2021 and a $400 million credit facility for customer financing. Investors in the round include Streamlined Ventures, Cervin Ventures, 8-Bit Capital, HoneyStone Ventures and a group of individual investors. When deploying subscription-based business models, SaaS companies often face challenges, like deferred cash flows, discounts and time to recoup customer acquisition costs. For example, Srimal explained that if a company signs a contract for $1.2 million, but the customer wants payments to be monthly or adjusted to how best they can pay, some companies can’t do that, so they offer a 20% or 30% discount. That’s where the credit facility comes in: Ratio makes the discounts unnecessary by giving the SaaS company the $1.2 million upfront so they can offer more flexible payment options for their customers to match their cash flow needs.

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Ratio bags $411M in equity, credit for flexible subscription payment models

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