A startup named Zenskar has raised $3.5 million in an early fundraising round with the goal of assisting SaaS companies in automating their billing procedures. Bessemer Ventures Partners took the lead in the seed funding round. Converge, Basecamp Fund, and Shine Capital also took part in the round.
The investment will be used by Zenskar to grow its engineering staff. Additionally, it hopes to go beyond SaaS billing by bringing solutions to businesses in industries like telecom, transportation, IoT, and media to automate accounting, make payments easier, and deliver analytics, as per reported by TechCrunch.
In March, Apurv Bansal and Saurabh Agrawal, who co-founded Zenskar, conducted a survey of more than 120 clients to learn about their billing difficulties. “Generally, tools are built in a linear fashion,” said Agrawal. “We thought about Zenskar like ground up — try to make the best tool from scratch after talking to so many people.”
Apurv Bansal, co-founder of Zenskar, said in an interview that 10% to 15% of SaaS companies today have moved toward a consumption-based pricing model on customers’ demand because of macro tailwinds such as product-led growth, automation and AI. Simple subscriptions will only be about 30% of the market, while complex subscription and consumption-based billing will cover the rest in the next decade, he predicted.
Bansal and Agrawal are second-time entrepreneurs who, respectively, sold their prior startups to Snapdeal and the music-streaming service Gaana.
“We are excited to partner with Zenskar on their journey to fundamentally disrupt the quote-to-cash tooling for SaaS companies. We were impressed with their deep understanding of customer pain points, and their DNA of first principles innovation to provide a radically unique and flexible billing software,” said Anant Vidur Puri, partner, Bessemer Venture Partners.
There are currently 12 people on the waitlist for Zenskar’s proof of concept, and live with one client, according to Bansal. The startup’s target market is the United States, despite the fact that its two-person engineering staff is located in India and operates remotely. They intend to establish a physical office in Bengaluru, according to Bansal.
Zenskar is a firm that wants to assist SaaS providers with automating their billing processes.