Zenskara startup looking to help SaaS companies automate their billing workflows has raised $3.5 million in a seed funding round.
Headquartered in New York and Bengaluru, Zenskar is building a platform for SaaS companies to generate bills for their complex pricing plans – whether based on usage-based pricing, subscriptions, nuanced discounts, credits, custom currencies, prepaid or ramp deals. .
Apurv Bansal, co-founder of Zenskar, said in an interview that 10% to 15% of SaaS companies today have moved to a consumption-based pricing model based on customer demand due to macro windwinds such as product-driven growth, automation and AI . Simple subscriptions will only make up about 30% of the market, while complex subscriptions and consumption-based billing will cover the rest in the next decade, he predicted.
The market is flooded with similar SaaS billing platforms, but Bansal said Zenskar enables companies to: configure its solution in a no-code, low-code way, without relying on engineers.
“We are fundamentally convinced that tech bandwidth in businesses will continue to decline in the future and that software solutions to be adopted should be adopted by non-tech users,” said Bansal, who previously worked as a product manager at Google and India. e-commerce company Snapdeal.
Bansal co-founded Zenskar with Saurabh Agrawal in March after surveying more than 120 customers to understand their billing challenges. “In general, tools are built in a linear fashion,” Agrawal says. “We thought about Zenskar as a foundation – try to make the best tool from scratch after talking to so many people.”
Bansal and Agrawal are entrepreneurs for the second time having sold their previous startups to Snapdeal and the music streaming app Gaana respectively.
Zenskar’s proof of concept is already live with one customer, and about 12 customers are on the waiting list, Bansal said. The startup focuses on the US as its market, although its small tech team of two people operates remotely from India. Bansal said they plan to open a physical office in Bengaluru.
The seed funding round was led by Bessemer Ventures Partners and saw participation from Shine Capital, Basecamp Fund and Converge.
“We are excited to partner with Zenskar on their journey to fundamentally disrupt quote-to-cash tooling for SaaS companies. We were impressed by their deep understanding of customer pain points and their DNA of first principles innovation to provide a radically unique and flexible billing software,” said Anant Vidur Puri, partner, Bessemer Venture Partners, in a prepared statement.
Zenskar plans to use his fund to expand his engineers’ team. It also aims to go beyond SaaS billing and provide solutions to automate accounting, facilitate payments, and provide analytics to businesses in industries such as telecom, transportation, IoT, and media.