Zuora to Acquire Togai, Enhancing Usage-Based Offerings Amid the GenAI Explosion
Acquisition empowers developers and finance teams to accelerate usage-based offerings
Zuora, Inc., a leading monetization suite for modern business, today announced its planned acquisition of metering and rating solution Togai, enhancing its usage-based offerings. With Togai’s low-code builder and developer-friendly interface to quickly configure metering and rating of raw events, the acquisition will help Zuora unite developers and finance teams to launch, iterate and adapt usage-based models.
The explosion of generative AI (GenAI) technologies has companies increasingly turning to usage-based business models, but added complexity and cost still prevent many companies from effectively monetizing their offerings. Developers often have sole access to product usage data and are left to manage it with inadequate, custom-coded systems, leaving finance teams unable to access the information they need to accurately invoice and recognize revenue.
Togai enhances Zuora’s monetization suite, enabling developers to work alongside finance teams to define and operate any pricing model with a solution that can be easily plugged into their existing data stack. Its metering system facilitates event ingestion from a variety of sources, and its flexible rating engine enables unique ways to package and bundle offerings. Developers can get started with Togai’s self-service interface in minutes, which can support up to a billion events per day and reduce customer disputes with fully auditable and traceable usage data. Its Revenue Simulator and pre-built CRM connectors also alert sales teams of upcoming upsell and renewal opportunities.
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“Togai’s sophisticated metering and rating extends Zuora’s market-leading monetization suite to accelerate usage-based models,” said Tien Tzuo, Founder and CEO at Zuora. “Together, we will be strategically positioned to provide the right solutions for developers and finance teams to power the next generation of monetization.”
Togai was founded in 2022 by Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan, who will join Zuora with Togai employees. After closing, Togai’s metering and rating solution will become a part of Zuora’s existing product suite alongside Zuora Billing, Zuora Revenue, Zuora Payments, Zephr and Zuora Platform. It will be available both as a new standalone usage offering and with Zuora’s existing consumption solution. The acquisition also strengthens Zuora’s ability to enable Total Monetization, helping companies evolve their offerings to align with customer demand through a mix of innovative business models.
“Developers spend months building internal metering and rating systems, which can quickly evolve into a dedicated team of engineers as companies realize that building a usage-based billing system is not a one-time effort. Togai makes it possible to go live in hours with an out-of-the-box, flexible solution to model any type of pricing and reliably scale,” said Abhishek Rajagopal, CEO and Co-founder at Togai. “Combining Zuora and Togai is the right decision to bring together deep metering and rating with the scale of Zuora’s end-to-end monetization technology.”
The acquisition of Togai is expected to close in early May 2024 and is subject to customary approvals and closing conditions. Foros is acting as financial advisor and Freshfields Bruckhaus Deringer US LLP as legal advisor to Zuora. QED Corporate Advisors is acting as financial advisor and Argus Partners as legal advisor to Togai.
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