Recently, Airbase, one of the best startups that sell budgeting software for various companies revealed $23.5 million extensions to its Series A. But the important question arises is that why the company raise an A extension in place of a Series B. The CEO of Airbase, Thejo Kote added that he considers his company as a series A company instead of a Series B company. He also said that the total value of Airbase went up enormously which is around 3x in comparison to the last one.
According to the CEO of Airbase, they are planning to increase their revenue like the previous year. The startup helps various companies to spend money and track their spending. Airbase also has virtual cards, a method of bill paying, and regular corporate cards. Airbase also has to spend reporting and controls to restricts cash outflows. The major motive of the company is to make it easier to manage and control the buying of goods and services for a business.
The CEO of Airbase also told about his competitor and discussed how they are different from others. He replied to all answers quickly as he said that the company brings the target markets of two companies and implements the methods to increase revenue generation. He also said that his competitor Divvy is only targeting smaller companies whereas Airbase is working for medium and larger companies. Airbase also charges a SaaS price for its software as it offers free tier only for larger companies that spend more. So, Airbase has two methods of generating revenue; income from interchange and software fees.
It is not interesting to make it free for expensive products, but it helps in setting up the competition, that the competitor Divvy said. But Airbase said that larger clients love to spend more to gain more revenue. With its free tier, there is room for both smaller and larger companies.
Investors of the Airbase are confident about its choices as the Startup is gaining huge revenue. One of its investors told about Airbase that the startup is creating wonderful software and killer product solution. In the coming years, Airbase has various opportunities to increase its capital and growth; we just have to wait to see where they can reach.