Lago – a Parisian usage- and subscription-based billing company – announced it raised $22 million in funding. The funding is in the form of $15 million in Series A led by FirstMark and $7 million in seed funding led by SignalFirst.
Additional investors include Y Combinator, New Wave, Addition, Script, and several industry veterans like Meghan Gill, Romain Huet, and Clément Delangue. In connection with the funding round, FirstMark’s General Partner Matt Turck is joining the board.
Lago CEO and co-founder Anh-Tho Chuong and co-founder (Product) Raffi Sarkissian previously worked at Qonto when they decided to launch their own company. After applying for the Y Combinator Summer 2021 cohort, they were accepted due to their strong previous work experiences. After discussing issues with billing systems with other Hacker News users,
Fortunately, the two company founders had expertise in billing systems as they built the billing system for the previous company they worked for. In under two years, Lago’s Github repository became the leading open-source repository that is solving for billing with over 5,000 “Gitstars.” Some of the companies that use Lago include Mistral AI, Together.ai, Flipside, Regate, and Lune.
Lago’s future goals include creating a flexible and composable billing engine, which will be driven by open source technologies. Some of the unique contributions made to the platform like specific metered aggregations, pricing models, and integrations. The company also has a goal of building the best community and tooling to collaborate on revenue data (forecast, recognition, and margin monitoring).
KEY QUOTES:
“We chose Lago as our billing provider because we believe in the open-source ecosystem. They have been able to follow the pace of our releases and have allowed us to focus on what we do best.”
- Timothée Lacroix, co-founder and CTO at Mistral.ai
“When we started Swan, we didn’t have in mind the full scope of intricacies of the revenue stack we’d have to build for an embedded banking platform like ours. After a thorough benchmark of available options, we decided to switch from a legacy solution to Lago as they proved to offer the strongest product, as the team has a deep understanding of hybrid monetization streams: transaction based, revenue sharing, subscriptions, etc , and the most developer-first approach.”
Nicolas Saison, co-founder and COO at Swan.io
