Pricing operations platform m3ter has raised £11.2 million in Series A funding.

The investment will support m3ter as it launches new analytics features and expands its US presence, building on impressive traction since the company launched from stealth in 2022. 

The round was led by Notion Capital, with participation from existing investors Insight Partners, Union Square Ventures, and Kindred Capital. 

m3ter was founded to support software companies moving beyond simple recurring subscription models to implement hybrid and usage-based pricing. These models have grown in popularity thanks to the widespread adoption of product-led growth, as well as the rise of APIs and automation. 

The ability to improve margin control, boost customer satisfaction and retention, and expand revenue through costless upselling has also made this emerging pricing strategy an invaluable lever for growth for modern software businesses. 

Despite their advantages, usage-based pricing models are challenging to deploy and manage because existing pricing and billing tools are not well adapted to them. This leaves companies ill-equipped to handle pricing and billing with any complexity or scale, which negatively impacts revenue, time to market, and customer experience.

Since its emergence from stealth, m3ter has grown its customer base by 375% as businesses of all stages look for a way to support hybrid and consumption-based pricing without having to change their existing systems. 

Customers include cloud infrastructure, payments, fraud detection, and ID verification businesses like ClickHouse, Sift and Onfido – all operating in sectors where a usage-based pricing model is a natural fit, but is difficult to implement and manage without the technology to support it. 

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“In a more challenging software market, SaaS businesses are balancing growth with profitability, making pricing an ever-more valuable lever,” said Griffin Parry, CEO and co-founder. 

“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.”

Jos White, who led the investment from Notion Capital, said: “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.”

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