Fintech company Ratio has raised $411m to develop its buy now, pay later (BNPL) and financing platform that cater to subscription-as-a-service (SaaS) businesses.
The funding includes $11m in venture capital, which was secured late last year, and a $400m credit facility.
A number of investors including Streamlined Ventures, Cervin Ventures, 8-Bit Capital, HoneyStone Ventures as well as several asset managers and tech CEOs from various companies took part in the fundraise.
Jointly founded by Ashish Srima (CEO) and Mason Blake (CTO), Ratio provides SaaS and recurring revenue firms with embedded BNPL services and other solutions.
The company’s solutions are designed to incorporate payments, predictive pricing, financing, and quote-to-cash process in a single platform.
It aims to explore opportunities in the subscription economy, which is estimated to share a $1.5tn segment of the recurring revenue industry.
Srimal said: “We created Ratio to revolutionise the way that SaaS companies and technology businesses price, get paid and fund their growth.
“Payment flexibility, intelligent and iterative pricing, combined with a frictionless quote to cash process is the new strategic frontier for SaaS growth.
“We use data, machine learning, and finance as tools to unlock this growth lever for our customers.
“This creates a win-win for both tech buyers and sellers — buyers get more payment flexibility to match their cash flow and procurement constraints, and sellers get more revenue acceleration tools. Our mission is to democratise the way that we buy, sell, and fund technology.”
Ratio further noted that its platform is based on two core products, Ratio Boost, an integrated BNPL payment tool, and Ratio Trade, a non-dilutive capital platform for high-growth SaaS and recurring revenue firms.