Amberflo, a tool created by ex-AWS programmers, allows companies to measure consumption, price for it, and accurately bill clients on demand. The Usage-Based Pricing (UBP) company has now announced a $15 million Series A funding round led by Norwest Venture Partners.
Amberflo is a self-service, pay-as-you-go metering and billing platform that is completely managed and fully equipped (also with a free tier). The ingestion, compilation, and measurement of all product usage data are handled by Amberflo, allowing businesses to choose the best pricing plan based on customer insights and revenue projections.
The UBP company already powers the metering and billing infrastructure for many high-growth companies including Firebolt.io, LaunchDarkly, and Coherent.global and is processing tens of billions of meter events per day. Amberflo previously raised a $5 million funding round led by Homebrew.
“Usage-Based Pricing will become the dominant business model for SaaS,” said Rama Sekhar, Partner at Norwest Venture Partners. “The infrastructure and software needed to offer usage-based pricing is difficult and expensive for companies to build in-house. Amberflo makes it easy for companies to meter and bill customers based on usage, both accurately and at scale.”
Cloud Businesses and UBP
Usage-based pricing is becoming increasingly popular for cloud-based infrastructure and SaaS operations, as it allows customers to pay only for the resources they use. This can be more cost-effective than traditional pricing models, which typically require customers to pay for a set amount of resources regardless of whether they actually use them. Additionally, UBP can be more flexible, as customers can easily scale up or down their usage as needed. As more companies move their operations to the cloud and adopt SaaS solutions, it is likely that UBP will become even more important in the future.
Consumption-based pricing is becoming a competitive advantage for businesses who are able to provide flexible pricing choices that respond to usage as a result of the uncertain economic climate and constricting budgets, according to Amberflo and its funding partners. Using a Product-Led Growth (PLG) sales motion, businesses may fully automate their client onboarding and provisioning procedures thanks to Amberflo’s platform. Users may pick from popular pre-built Usage-Based Pricing models that are already created, or they can take full control and create their own pricing schemes.
With Amberflo, businesses would be able to gain a real-time understanding of client behavior and respond proactively to shifts in use patterns, which may help increase customer happiness, product uptake, and revenue. With its “distinctive design that separates metering from billing, ease of use, and scalability,” Amberflo claims itself to be the go-to option for contemporary cloud businesses.
“It’s abundantly clear that businesses are beginning to demand more fair and transparent pricing that reflects actual usage of products,” said Puneet Gupta, CEO and Founder of Amberflo. “Amberflo is leading this transition to a usage-based future with our cloud-native metering platform and billing application, which provide our customers with scale, flexibility, cost effectiveness, and greater customer satisfaction.”
About Norwest Venture Partners
Norwest Venture Partners (NVP) is a venture capital firm that invests in early-stage and growth-stage technology companies across a variety of industries, including software, consumer internet, healthcare, and enterprise technology. The firm was founded in 1961 and has offices in Palo Alto, San Francisco, and New York City.
NVP has a long history of successful investments, including companies such as Flextronics, RingCentral, and web hosting provider GoDaddy. They have a team of experienced investors and operate a global platform that provides portfolio companies with access to capital, resources and strategic relationships. NVP typically invests in series A and B rounds, but also do seed, and later-stage rounds.