Recharge Announces $277 Million in Growth Capital from Summit Partners, ICONIQ Growth and Bain Capital Ventures to Power E-Commerce Subscriptions
Latest funding values Recharge at $2.1 billion
SANTA MONICA, CA, May 6, 2021 – Recharge, the leader in subscription e-commerce, today announced that it has raised $277 million in growth capital from Summit Partners, ICONIQ Growth, and Bain Capital Ventures. Founded in 2014, the company 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 Andrew Collins, Managing Director at Summit Partners. “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. Recharge 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.”
Headquartered in Santa Monica, CA, Recharge offers a fully remote working environment, which includes more than 300 team members in 10 countries. Over the past year, a number of executives joined Recharge from technology companies such as Headspace, Klarna, Qualtrics, and Duo Security. The company has nearly doubled its headcount in the past year and plans to use the new capital to continue hiring, accelerate product development, and market expansion.
Recharge is the leading provider of subscription management software for e-commerce. Since 2014, merchants of all sizes have used Recharge’s billing and payment management solutions to grow their business by increasing customer lifetime value and reducing customer churn. Today, Recharge powers subscriptions for nearly 20 million subscribers across 15,000 merchants, including fast-growing brands such as Harry’s, Oatly, Fiji Water, Billie, and Native. Though based in Santa Monica, CA, the remote-first company is distributed across 10 countries around the world. Recharge is privately funded by Summit Partners, ICONIQ Growth, and Bain Capital Ventures. For more information, visit: https://rechargepayments.com/
ABOUT SUMMIT PARTNERS
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $23 billion in capital dedicated to growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the economy and has invested in more than 500 companies in technology, healthcare and other growth industries. These companies have completed more than 160 public equity offerings, and more than 200 have been acquired through strategic mergers and sales. Summit has partnered with more than two dozen companies across the e-commerce and consumer landscape, including Brooklinen, Jungle Scout, Klaviyo, MercuryGate, Philz Coffee, Quay Eyewear, Reverb.com, Sezane, Sifted, TinyPrints, Veepee. Summit maintains offices in North America and Europe and invests in companies around the world. For more information, please see www.summitpartners.com or follow on LinkedIn.
ABOUT BAIN CAPITAL VENTURES
Bain Capital Ventures partners with disruptive founders to accelerate their ideas to market. The firm invests from seed to growth in startups driving transformation across industries, from SaaS, infrastructure software and security to fintech and healthcare to commerce and consumer tech. The firm has helped launch and commercialize more than 240 companies, including DocuSign, Jet.com, LinkedIn, Redis Labs, Rent the Runway, Rubrik, SendGrid and SurveyMonkey, as well as a number of commerce tech leaders such as Alloy Automation, Attentive, Flow, Jet.com, Material Bank, Mirakl, and ShipBob. Bain Capital Ventures has $6.1 billion in assets under management with offices in San Francisco, New York, Boston, and Palo Alto. Follow the firm via LinkedIn and Twitter.
ABOUT ICONIQ GROWTH
ICONIQ Growth partners with exceptional entrepreneurs and leaders who drive global impact and change. We are inspired by visionaries defining the future of their industries by building company cultures that endure. Our unique investment platform harnesses the power of ICONIQ Capital’s vibrant ecosystem of founders, pioneers, and business leaders with the goal of delivering tangible value and amplifying our portfolio companies’ success from early growth stage to IPO and beyond. ICONIQ Growth’s portfolio of innovators include Adyen, AirBnB, Alibaba, Alteryx, Automattic, BambooHR, Braze, Chime, Collibra, Coupa, Datadog, Docusign, Gitlab, Marqeta, Miro, Procore, Red Ventures, Relativity, ServiceTitan, Snowflake, Sprinklr, Truckstop, Uber, Wolt, and Zoom, among others. For more information and a complete list of portfolio companies, please visit iconiqgrowth.com