Subscription Software Kajabi Raises $550M to Lure Writers and Podcast Entrepreneurs
Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.
Writers and podcasters have carved out new paths to monetize their expertise, and investors are eying the software companies powering the tech where their content lives online.
Kajabi, an ecommerce platform for entrepreneurs, is one of those companies. On Tuesday, the Irvine-based company closed a $550 million round valuing it at $2 billion.
The subscription service is designed for content creators and "knowledge entrepreneurs" trying to build businesses online, offering digital tools to build websites, newsletters, online courses and membership programs. Access to the suite of tools costs between $119 and $399 per month.
"Kajabi reduces the administrative burden of having to cobble together different software tools with an easy-to-use platform that saves our customers time and money, which they can reinvest into growing their businesses," Kajabi CEO and co-founder Kenny Rueter said in a statement.
Founded in 2010, the company is profitable and currently in "hyper-growth mode," according to a statement. Kajabi boasts over 43,000 members who have generated $1.5 billion in sales annually.
The mega boost will be used for hiring, building new products, expanding internationally and to "explore strategic mergers and acquisitions," according to the statement.
Tuesday's round was led by Tiger Global Management and included funding from TPG, Tidemark, Owl Rock Capital and Meritech Capital, along with existing Spectrum Equity.
This story has been updated.
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Francesca Billington is a freelance reporter. Prior to that, she was a general assignment reporter for dot.LA and has also reported for KCRW, the Santa Monica Daily Press and local publications in New Jersey. She graduated from Princeton in 2019 with a degree in anthropology.
