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M3ter gets £11m funding boost for usage-based software platform

M3ter funding
M3ter co-founders John Griffin and Griff Parry

Just over a year after coming out of stealth with a £13m fundraise, London-based pricing operations platform M3ter has almost doubled its funding with a $14m (£11.2m) Series A round.

Having grown its domestic client base in the past year, the startup is now turning its attention towards capturing the US market.

Founded in 2020, M3ter works with software firms to help manage a usage-based pricing model for software as service (SaaS) products.

Software companies often sell their products on a subscription model that charges customers the same rate every pay cycle. M3ter’s usage-based model means the cost to the customer at the end of a month is determined by how much the product was used, reducing the pressure to cancel costly subscriptions for unused software.

“In a more challenging software market, SaaS businesses are balancing growth with profitability, making pricing an ever-more valuable lever,” said M3ter co-founder and CEO Griffin Parry.

“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.”

The platform, which can be integrated into existing CRM platforms, is used by clients to calculate usage per user to determine the cost at the next billing cycle.

M3ter has claimed a strong performance over the last year, having said it grew its customer base by 375% since its launch.

Now backed by Series A funding, M3ter said it will build an “advanced analytics offering” to complement its existing service. Additionally, M3ter will put the new funds towards its US expansion, having already made strategic hires in North America.

The latest round was led by Notion Capital with participation from existing investors Insight Partners, Union Square Ventures and Kindred Capital, all of which backed M3ter in its February 2022 funding round.

“M3ter’s technology will power this transition towards more usage-based and intelligent pricing,” said Jos White, general partner at Notion Capital.

“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. We look forward to the bright future ahead.”

Read more: M3ter CEO on shipping products too early and launching mid-pandemic