Chargebee, a subscription billing and revenue management software company, has bought RevLock, a revenue recognition software developer.
The acquisition comes shortly after Chargebee’s latest funding round, where the company reached unicorn status as it gained more financing to expand the features in its software for its global customer base. RevLock and Chargebee have partnered on integrations for the past year, and the acquisition unites the two companies as Chargebee RevRec. Financial terms were not disclosed.
The deal is a sign of the growing demand for revenue management software, particularly for subscription billing companies, which have faced challenges implementing the revenue recognition standard developed by the Financial Accounting Standards Board and the International Accounting Standards Board.
“As we continue to build a category-leading product for subscription management and billing, we see revenue recognition as the natural next step,” said Chargebee CEO Krish Subramanian in a statement Tuesday. “With Chargebee RevRec, we are committed to offering our customers a best-in-class solution that automates some of the most challenging aspects of the billing process for subscription-based businesses.”
Chargebee was founded in Chennai, India, and has its U.S. headquarters in San Francisco. In April, the company announced a Series G financing round led by Sapphire Ventures and two existing investor firms, according to
Under the revenue recognition standard, revenue is only recognized when the contractual obligation is met with the delivery of service, instead of when payment is made. With the acquisition and integration of RevLock’s software, Chargebee customers will be able to recognize revenue based on the five-step compliance model outlined by FASB’s ASC 606 revenue recognition standard; as well as achieve complete visibility through detailed reporting and dashboards. They will also be able to manage modifications arising mid-cycle, such as bonuses or refunds, and integrate with billing and collections and ERP systems.
“We are thrilled to join Chargebee and offer RevRec so that modern-day finance leaders will have a one-stop solution to digitally transform recurring invoicing, accounts receivables and financial reporting,” said RevLock CEO Craig Kirsch in a statement.
