ReCharge, an e-commerce subscription platform, today announced that it has raised $277 million (R3,9 billion) in growth capital. The California-based company has raised the funds from Summit Partners, ICONIQ Growth, and Bain Capital Ventures.
Founded in 2014, ReCharge was self-funded for over five years before accepting outside financing.
The company also announced the appointment of Andrew Collins, Managing Director at Summit Partners to its Board of Directors, and Aaref Hilaly, Partner at Bain Capital Ventures, and Yoonkee Sull, Partner at ICONIQ Growth will join the company as Board Observers.
“We believe the most successful bootstrapped companies learn to operate with the utmost efficiency and a disciplined focus on growth. The ReCharge team identified a true product-market fit and built a product that customers love – which has fueled strong organic growth as the business has scaled,” said Collins.
“We believe in the ReCharge mission and are thrilled to partner with Oisin, Mike and the entire team to
help e-commerce brands build meaningful, long-lasting relationships with their customers.”
E-commerce has evolved quickly as consumers and brands alike seek convenience and connection. As brands pursue direct relationships and consumers increasingly use their purchasing power to reflect their values, a new generation of direct-to-consumer brands is emerging.
ReCharge helps these brands to grow by allowing them to easily add subscriptions offerings to their business, ultimately turning one-time transactions into loyal, repeat customers.
It has experienced exponential growth, doubling its processing volume each year for the past five years. The company, which is cash flow positive, has now processed over $5.3 billion in transactions and more than doubled annual recurring revenues from 2019 to 2020.
“Our merchants are seeing a huge benefit from the addition of subscription offerings to their businesses,” said Oisin O’Connor, CEO and co-founder of ReCharge.
“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. Our partnership with Summit Partners, ICONIQ Growth and Bain Capital Ventures equips us with both capital and company building expertise that helps to solve new customer challenges and expand our reach through new products and services.”
From its core offering as a subscription billing platform, ReCharge has expanded to a broader set of products designed to help e-commerce businesses increase revenues and reduce operating costs.
Today, the company powers subscriptions for 15,000 merchants and 20 million subscribers worldwide. ReCharge powers some of the biggest and fastest-growing direct-to-consumer brands such as Harry’s, Oatly, Fiji Water, Billie, and Native.
“We have been with ReCharge since the beginning, and we’ve always been impressed by their pace of innovation and responsiveness to customer feedback,” said Leonid Tsiuliupa, CTO of Ka’Chava, ReCharge’s first customer in 2014.
“We’re excited to see this investment and am confident the new capital will help the company create even more value for their customers and further strengthen our relationship with ReCharge.”