ReCharge Raises $277M for its Ecommerce Subscription Platform

Kiara Rodriguez
Kiara is an editorial intern at dot.LA. She has interned in communications at KCRW, assisted with economics research at Brookings Institution,and reported for local publications in New Jersey. Before joining dot.LA, she was a Yenching Scholar at Beijing University, researching the politics of international communications and leading the Yenching Academy’s podcast. She graduated from Princeton University in 2019 with a B.A. from the School of Public and International Affairs.
ReCharge Raises $277M for its Ecommerce Subscription Platform
Photo by Oana Cristina on Unsplash

The subscription management platform behind Harry's, Native and Fiji Water just pulled in $277 million in Series B round backed Summit Partners, ICONIQ Growth and Bain Capital Ventures.

Santa Monica-based ReCharge, founded in 2014, bootstrapped its growth until last year, when the subscription ecommerce service raised $50 million from Summit. This latest round values the company at $2.1 billion.

The SaaS platform now powers subscriptions for 15,000 merchants and 20 million subscribers worldwide, including Oatly, Billie and other direct-to-consumer brands.

COVID has been a boon for the ecommerce business as the stay-at-home economy pushed consumers online. The profitable company has more than doubled annual recurring revenues from 2019 to 2020.

CFO Stephanie Lemmerman credits ReCharge's growth to a business model that prioritizes merchant and customer trust as well as product quality.

"Other subscription services offer limited turnkey solutions, whereas our API first approach to our product development allows a high level of customization and flexibility," said Lemmerman. "We offer a cloud-based approach for all business sizes."

ReCharge's software provides merchants a way to offer and manage subscriptions for physical products and make it easier for them to repeat purchases.

The company has processed $5.3 billion, doubling its processing volume each year for the last five years.

Lemmerman said the company plans to use the funds to invest in improving the product, build up marketing and work on customer service. She also said plans are in the works to expand beyond North America; but declined to reveal further details on specific products or services.

Subscribe to our newsletter to catch every headline.


Energy Shares Gears Up To Bring Equity Crowdfunding to Retail Investors

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

Energy Shares Gears Up To Bring Equity Crowdfunding to Retail Investors
Photo by Red Zeppelin on Unsplash

The Inflation Reduction Act contains almost $400 billion in funding for clean energy initiatives. There’s $250 billion for energy projects. $23 billion for transportation and EVs. $46 billion for environment. $21 billion for agriculture, and so on. With so much cash flowing into the sector, the possibilities for investment and growth are gigantic.

These investment opportunities, however, have typically been inaccessible for everyday retail investors until much later in a company’s development–after an IPO, usually. Meaning that the best returns are likely to be captured by banks and other institutions who have the capital and financing to invest large sums of money earlier in the process.

That’s where Pasadena-based Energy Shares comes in. The company wants to help democratize access to these investment opportunities and simultaneously give early-stage utility-scale energy projects another revenue stream.

Read moreShow less

How These Ukranian Entrepreneurs Relocated Their Startups to LA and Found Success

Aisha Counts
Aisha Counts is a business reporter covering the technology industry. She has written extensively about tech giants, emerging technologies, startups and venture capital. Before becoming a journalist she spent several years as a management consultant at Ernst & Young.
How These Ukranian Entrepreneurs Relocated Their Startups to LA and Found Success
Joey Mota

Fleeing war and chasing new opportunities, more than a dozen Ukrainian entrepreneurs have landed in Los Angeles, finding an unexpected community in the city of dreams. These entrepreneurs have started companies that are collectively worth more than $300 million, in industries ranging from electric vehicle charging stations to audience monetization platforms to social networks.

Dot.LA spent an evening with this group of Ukrainian citizens, learning what it was like to build startups in Ukraine, to cope with the unimaginable fear of fleeing war, and to garner the resilience to rebuild.

Read moreShow less