Ratio raises USD 411 mln to transform B2B SaaS payments

The subscription economy is now a USD 1.5 trillion segment of the recurring revenue market, with industries ranging from software to razor blades deploying subscription-based business models, but companies still face challenges with deferred cash flow, steep discounting, and the time needed to recoup customer acquisition costs, even as customers’ desire for payment flexibility is growing more ubiquitous. The current cash flow crunch has only exacerbated this problem.

Ratio’s platform allows SaaS companies and other recurring revenue businesses to offer embedded Buy Now, Pay Later services that granularly match their customers’ cash flow needs. This provides flexibility to the customer, while boosting sales for vendors and giving them immediate access to the value of the customer contract.

Simultaneously, Ratio allows SaaS businesses to leverage their recurring revenue streams to unlock instantaneous new non-dilutive capital, without having to give up additional equity, dilute control of their business, steeply discount their products, or spend time in an always-be-fundraising mode.

What products Ratio offers?

Ratio Boost, a fully integrated BNPL payment, optimised pricing, and checkout product, embedded via API into the seller’s systems and processes at the point of sale. Customers get payment flexibility, by matching their cash flow needs, and a frictionless buying experience automatically tailored to their company’s unique needs, while vendors get paid cash upfront for each customer contract, minimising discounting, and dilution. By applying machine learning to financial and behavioural data, Ratio Boost can validate and optimise product pricing and payments for churn risk, lifetime value, and willingness to pay.

Ratio Trade, a non-dilutive upfront capital solution for high-growth SaaS and recurring revenue companies backed by their portfolio of contracts. With Ratio Trade, vendors no longer have to discount their offerings or dilute equity to access working capital, and they can access financing in days, not months, to keep growing their brands.

How do Ratio’s products benefit SaaS vendors and enterprise buyers?

Together, Ratio’s technologies offer a solution for both SaaS vendors and SaaS buyers in today’s increasingly cash-constrained environment. With 80% of SMB buyers expecting a recession in 2022, the ability to streamline payments over time and maintain a cash operating buffer makes software purchases easier to justify, as per the press release.

For enterprise buyers, with budgets tightening, BNPL solutions enable easier purchasing decisions for IT purchases. And with funding for the SaaS sector now waning, Ratio’s solution enables vendors to boost sales, maximise revenues, and reduce the need for costly discounting in order to finance their growth.

Company officials stated that they created Ratio to change 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. Ration uses data, machine learning, and finance as tools to unlock this growth lever for its customers. acceleration tools.