Recurly, a startup that makes it easy for other companies to manage their subscription billing, has raised $6 million in a Series A financing round led by BV Capital, and including Polaris Venture Partners, Harrison Metal Capital and FreeStyle Capital. This brings Recurly’s total funding to $8 million.
Recurly’s service allows businesses to quickly implement a subscription billing system, handling tasks like credit card number storage (it also supports integration with financial software like QuickBooks). Recurly automates many of the complexities involved with subscription billing management, such as customer upgrades and downgrades, credit card errors and declines, automated customer communications, and customer retention management.
Recurly also recently launched a payment gateway designed specifically to handle the unique requirements of recurring billing. The startup’s technology can be integrated directly with payment processors’ backends and more efficiently manage recurring transactions.
Recurly now powers recurring billing for over 750 small/medium enterprises, including JibJab, Fox News Radio, Justin.tv, SlideShare, GOOD.is, and Weather Underground. The new funding will be used for hiring in engineering and support and for growth expansion.