Chennai, India, 6th June 2023: Togai, the B2B SaaS metering and pricing platform, announced it has raised USD 3.1 million in a seed round, led by Together Fund. The fund round also saw participation from other investors like BoldCap, Core91, and illustrious angel investors, including Prasanna Shankar, the Co-Founder of Rippling. The funds will be used for product development and expanding into new geographies.
According to a McKinsey study, pricing has a profound impact on a company’s financial health, as even a 1% improvement in pricing can lead to over an 8% increase in profitability. However, businesses in the B2B market are currently facing increasing churn rates, highlighting the need for tailor-made pricing models. Customers are now actively seeking pricing flexibility and customization options, which puts pressure on companies to have complete autonomy over their pricing strategies. Addressing this market gap, Togai’s plug-and-play model supports pricing and finance teams in deploying their pricing strategy while integrating seamlessly with their existing quote-to-cash systems for effortless, ‘no-code’ pricing alterations.
Founded by Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan, Togai takes an innovative approach to crafting monetization tools for today’s dynamic billing and pricing landscape. The company is empowering businesses to make instantaneous and customized changes to pricing, thereby enabling them to remain competitive. The founder trio launched their product in April 2023 in beta to customers across dev tools, fintech, and conversational AI verticals. Togai enables businesses to roll out pricing changes within a matter of hours, circumventing the need for time-consuming engineering efforts. The model seamlessly integrates with existing tools (CPQ, CRM, Billing, Usage analytics, Revenue recognition), providing total visibility and ensuring synchronization across all systems and processes throughout any pricing update cycle.
Regarding the investment in Togai, Manav Garg, founding partner at Together Fund, mentioned, “As we navigate an AI-first world, ‘subscribers’ or ‘users’ are getting replaced by ‘software’ and ‘workflows’. Simple pay-as-you-go models, while straightforward, are centered around a cost-plus pricing strategy, often overlooking the full value your product offers to customers. This evolution challenges the conventional subscription and seat-based pricing models and necessitates a comprehensive reimagining of them. Togai is addressing this need by helping SaaS companies reconstruct their pricing models from the ground up.”
Speaking about Togai’s solutions, Abhishek Rajagopal, Co-Founder and CEO of Togai expresses, “With Togai, SaaS companies can rapidly test and implement their pricing strategies and can go live within days instead of months. We are poised to continue our journey in building end-to-end monetization solutions for this burgeoning segment and any B2B entity seeking to implement pricing changes to drive growth and profitability. Furthermore, we are excited to expand our reach to additional territories.”
Nikhil Nandagopal, Co-founder and CPO of Appsmith, an open-source dev tools company that uses Togai, said, “When we decided to launch usage-based pricing, we sought tools that provided flexibility to support different pricing models and the reliability of handling data at high volume. Togai’s solution-first approach accommodated our various pricing & billing scenarios, not just for today but also for the future, fast-tracking our time-to-market from months to mere days.”
The company’s B2B plug-and-play model is now open to public access. The company’s monetization marketplace, currently in beta, hosts over 10 apps and integrations, empowering users to visualize the flow, pinpoint leakages, and bridge the gaps in their entire quote-to-cash process, sans any engineering effort.