Usage-based pricing is a pricing model that enables customers to pay for a product according to how much they use it. It is becoming increasingly popular in the software industry, as it aligns with customer value and lowers the barrier to entry. However, implementing usage-based pricing can be challenging for software companies, as it requires capturing and analysing granular usage data, applying complex pricing rules, and integrating with billing systems.
m3ter is a platform that helps software companies operationalise modern usage-based pricing strategies. It captures usage, pricing, and account data at scale and applies complex pricing configurations in real-time. The London-based startup has recently announced $14 million in Series A funding, led by Notion Capital, with participation from Insight Partners, Union Square Ventures, and Kindred Capital.
The funding will be used to expand the company’s presence in the US and launch new products informed by advanced data science. It will also support the development of m3ter’s advanced analytics features, such as a Cost Allocator, Pricing Experimenter, and Usage Forecaster, to help software companies optimise their pricing and billing operations.
Griffin Parry is the CEO and co-founder of m3ter. He previously worked in media blue chips, focusing on digital strategy and transformations. He also has experience in B2B SaaS and Media, and functional expertise in product development and B2B go-to-market.
m3ter has experienced high demand and grown its customer base by 375% since emerging from stealth in February 2022. Some of its customers include ClickHouse, a leading open-source analytical database, Notion Capital itself, and has partnered with Chargebee, a subscription management and billing platform.
m3ter’s partnership with Chargebee delivers advanced event metering, usage-based pricing, and billing capabilities to Chargebee’s customers. This partnership enables software companies to leverage both platforms to create flexible and scalable pricing models that drive customer adoption and retention.
m3ter plans to expand its US presence and has made strategic hires, including Craig Irons as VP Sales, North America. Irons brings years of experience from companies like AWS where he led worldwide GameTech business development, and Mirantis, where he led the cloud computing company’s sales team.
Griffin Parry, CEO and co-founder of m3ter, highlights the importance of hybrid and usage-based pricing in the current software market. He says,
“In a more challenging software market, SaaS businesses are balancing growth with profitability, making pricing an ever-more valuable lever. Hybrid and usage-based pricing are now firmly in the spotlight because of their ability to deliver better customer experiences while reducing churn and increasing revenue, and as their popularity continues to grow, the opportunity for m3ter is obvious. Today’s funding enables us to take our ambitions to the next level, making new pricing models accessible for every software business that needs them.”
The investors also expressed their enthusiasm for m3ter’s vision and product. Jos White, partner at Notion Capital and co-founder of MessageLabs and Mimecast, says,
“I’m excited to announce our investment in m3ter. As pricing becomes a strategic priority for more software businesses, the one-size-fits-all approach looks increasingly obsolete. m3ter’s technology will power this transition towards more usage-based and intelligent pricing. Already, the company’s co-founders have laid solid foundations with an exceptional team and product, as well as deep engagement and alignment with their early customers and partners. We look forward to the bright future ahead.”
Tanya Bragin, VP Product at ClickHouse, adds,
“Working with m3ter has enabled us to deliver granular usage statements and bills that our customers can rely on. As we evolve our offering, we can adjust, experiment, and iterate on the pricing model on top of the m3ter platform without distracting our engineers. m3ter takes the headache out of this process, so we can focus on building the best database for real-time analytics and offering it as a hosted service.”
Revolutionising Software Pricing Strategies
m3ter is on a mission to help software companies adopt usage-based pricing models that drive growth and customer satisfaction. With its platform, software companies can capture usage data at scale, apply complex pricing rules in real-time, integrate with billing systems seamlessly, and leverage advanced analytics to optimise their pricing strategies.