On demand billing and payments company, Zuora, has been named the OnDemand 100 Company of the Year by AlwaysOn, a Silicon Valley web property that tracks activities in emerging companies.
As you know if you’ve been here before, Zuora was one of the earliest movers in the market for on demand billing services for companies that sell through the subscription channel. The company realized early on that subscriptions were much different from conventional products in how they are bought and paid for. One of the founders, Tien Tzuo, dealt with billing challenges at Salesforce.com when the company was young and trying to figure it all out. That led to Zuora.
Zuora has raised more than $77 million in its 5-year history and $36 million came in the recently completed series D funding round. The company is spending its millions on expansion, sales and marketing. It has opened offices in Europe and is expanding internationally.
The timing was right for Zuora. A huge new class of subscription companies proved the value of subscriptions and began bumping up against operational issues like billing and Zuora provided a solution. It’s not over yet. A lot of data gets generated in subscription commerce and sophisticated subscription companies can leverage it to measure and manage their businesses. Zuora still has other fields to conquer and one of them will surely be an IPO at some point.