The dirty little secret of SaaS is that seat-based pricing doesn’t work for the vendors or the customers. Vendors don’t capture economics aligned with the true value they provide and customers often pay for seats that go unused or underutilized. That’s why the software and cloud services markets are already moving to consumption-based pricing. Leading companies such Snowflake, Confluent and MongoDB have already shown the benefits of usage-based pricing and now the rest of the world is catching on. It’s for that reason we're so delighted to finally share our investment in Amberflo, which just announced a $15 million Series A financing.
WHO: Puneet Gupta and Lior Mechlovich experienced the pain of building usage-based billing firsthand while at Amazon Web Services. Their teams were responsible for some of the original metered, usage-based cloud services at AWS. While there, they saw the need for both accurate measurement of consumption and flexible billing and invoicing. With this deep expertise and hands-on experience, the team decided to launch Amberflo and make it possible for any company to employ usage-based metering and billing.
WHAT: Amberflo manages end-to-end metering, pricing, invoicing, and billing infrastructure for software and cloud services companies. By implementing Amberflo, companies are able to optimize their product-led growth (PLG) conversion, decrease customer acquisition costs and increase net revenue retention. Customers also benefit by paying software fees that are tied directly to value.
HOW: Amberflo built a robust, accurate real-time usage metering platform that is decoupled from a scalable, flexible billing and invoicing service. In the words of one customer, “the idea of separating metering from pricing and billing is a stroke of genius.” It’s this insight that has enabled Amberflo to already power usage-based billing for companies such as LaunchDarkly and Firebolt.
WHY: The shift towards usage-based pricing is gaining more and more momentum. Product-led growth is changing how users are adopting software. Building the metering and billing infrastructure needed to support these trends is complex, expensive and time-consuming. Amberflo offers a comprehensive solution out of the box, making it possible for every company to take advantage of usage-based opportunities in billing and beyond.