RevenueCat raises $12 million Series C

RevenueCat, a platform offering tools for in-app purchases and subscriptions on both iOS and Android, has secured $12 million in Series C funding led by Adjacent. The company’s latest funding round follows its $40 million Series B almost 3 years ago. 

“We still have most of the money we raised in 2021, and adding cash to the balance sheet only helps at the margins. We now have over $40M in the bank, are crossing $20M in ARR, and are accelerating. We still aren’t profitable, but that is by design. We halved our burn rate since last summer, our runway is effectively infinite, as we have enough growth to cover our losses with just minor shifts in hiring and investments,” said RevenueCat CEO Jacob Eiting in a blog post announcing the latest funding round. 

Currently facilitating subscriptions in more than 30,000 apps and processes over $2 billion in subscriptions each year, RevenueCat was founded in 2017 by Jacob Eiting and Miguel Carranza Guisado. Eiting said that after the company’s Series C funding round in February 2021, RevenueCat’s Annual Recurring Revenue (ARR) had increased from $1 million to $3 million within a year.

RevenueCat has not reached profitability yet, but Eiting remains optimistic about its future profitability. The company still holds the funds it raised in 2021 and now boasts over $40 million in its bank account. Additionally, it has managed to cut its burn rate in half since last summer.

“RevenueCat is too important to too many apps to risk the company driving towards a financial cliff. This may be counter to the prevailing narrative of how venture-backed companies should be built, but our investors are aligned with us and know that Miguel and I are leading the company to maximize the value for developers. Investors make more money when developers make more money,” Eiting said. “To that end, we’re still aiming to take the company public in this decade,” he said.