Dutch startup Solvimon, a next-generation billing platform, has raised €9 million in seed funding from Northzone known for investing in Kota and Statement and some business angels. The investment will be used to continue expanding the team and accelerate their go-to-market.
Need for flexible billing
Research from Openview claims that nearly three-in-five software companies already offer some form of usage-based pricing. However, the complexity of usage-based billing at scale, using legacy or homegrown systems, remains one of the major barriers to adoption.
As per McKinsey, without a proper solution in place, the transition from user-based to usage-based models can lead to difficulties in accurately and automatically billing customers. In turn, this can lead to revenue leakage and manual work to rectify errors, which becomes a strain on temporal and financial resources.
Automates billing process
Founded by former Adyen VPs – Kim Verkooij and Etienne Gerts in 2022 in Utrecht, Solvimon’s platform empowers mid to large businesses to effortlessly operationalise modern pricing methods. It lets customers pay only for what they consume and hybrid models which combine usage-based and traditional, user-based subscriptions.
The platform lets businesses monitor invoices in real-time and unlock insights into product usage to identify opportunities for revenue expansion and customer retention.
As per the company, Solvimon can handle the entire monetisation process. It is end-to-end, from the point where sales teams generate deal terms, to where finance teams report on revenue. Having a single source of truth for all product pricing and revenue data not only streamlines operations across the organisation, it will unlock key business insights.
Kim Verkooij, co-founder and CEO of Solvimon, commented: “While there has been innovation in pricing and metering solutions, businesses are still underserved. Their options are patching together point solutions or entering the expensive and time-consuming process of building a homegrown billing solution. There is a clear need for a flexible, yet end-to-end billing platform. We’re really happy to be partnering with the Northzone team. They have studied the space deeply and understand the scale and urgency of the problem we’re solving. Their conviction meant that we could close the round in just two weeks and get back to building the business.”
Michiel Kotting, a partner at Northzone commented: “Having previously built Adyen’s complex internal billing engine, Kim and Etienne bring a wealth of unique insights and a deep understanding of the complexity of pricing for larger companies which are increasingly adopting hybrid business models. Billing and pricing software are mission-critical, and there is a strong need for a sophisticated end-to-end solution with a breadth of functionality”.
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