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On the heels of its earlier$12 million fundraise , subscription direction platformRevenueCathas made its first acquisition — and it ’s an strange one . Instead of acquiring a caller to add more shaft to its weapons platform , it ’s buying an app offering subscriptions to “ spicy ” audiobooks , Dipsea .
No , this is n’t a monumental pivot man for the popular platform used by more than 30,000 app developers , including Notion , VSCO , Ladder , Photoroom , Buffer , and others .
alternatively , the novel melodic theme here is to fetch a subscription - based app in - house to serve as a testing footing for RevenueCat ’s young feature and functionality , the company allege . Plus , it will dish as part of RevenueCat ’s “ build in public ” philosophy .
Dipsea ’s app works with author and narrators ( andElevenLabs ‘ AI vocalization technology ) to produce a variety of romantic fictitious tales with a focus on the female regard . Currently , Dipsea has a fairly rich clientele , with 93,847 give contributor and an ARR of close to $ 6 million . Last month , the app overstretch in $ 505,920 , for representative .
Though the app is doing well , as a speculation - endorse startup in today ’s tightened regulatory environment , it was having trouble find an exit . As a longtime RevenueCat customer , this acquaint an unusual chance .
“ I ’ve bed Faye [ Keegan , CEO and conscientious objector - founder of Dipsea ] since nearly the beginning of RevenueCat , ” say co - beginner and CEO Jacob Eiting . “ We ’ve gotten to know each other more over the eld , and just always feel like it ’s hard to find multitude to empathise RevenueCat ’s client problems as deep as somebody who ’s last it . ”
Eiting say that when the chance to acquire the Dipsea mental process appeared , he think it would prove to be a chance to really seek to operate a live app , using RevenueCat ’s putz , so the ship’s company could ensure it was staying up - to - day of the month on what the real challenges are for subscriptions apps on today ’s App Store .
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“ The App Store has entirely turned over in the time since we started , ” he says . “ All the tactic have completely changed . ”
Today app developer face the typical issues of exploiter learning , rebirth , and holding , but the subscription thriftiness itself has grow at least 10 meter since RevenueCat began operating , Eiting says . contention is fiercer , too . For every democratic app family , there are at least seven other viable challenger . In add-on , Apple ’s launch of the user secrecy measure ATT ( App Tracking Transparency ) has affected developers ’ user acquisition effort .
“ It ’s in spades gotten harder and more sophisticated , ” Eiting says . “ And RevenueCat is part of that — democratise that — drive technique that different apps have figured out on their own and bring that to everybody out of the loge . ”
Still , running a subscription - based audiobooks app will be a new frontier for RevenueCat .
To assist with this , the learning is bringing aboard Keegan and her five - person team , who will continue to update the app and desegregate the new tools that RevenueCat require to prove .
By have its own app , RevenueCat can try out with young technique before trying to convince its own paying client they ’re worth the risk . And , in addition to testing tools , the app can swear out as a demonstration to potential customers who want to go hands - on with RevenueCat ’s fascia before they commit .
“ Joining forces opens up new hypothesis for Dipsea , ” Keegan say in a financial statement shared with TechCrunch . “ We ’ll tap into the riches of subscription growth experience inside the ship’s company , and married person with them to keep building cracking feature that assist developers make more money while providing our Dipsea users with the message they be intimate . I could n’t be more thrilled to join the team . ”
Dipsea was plump for by investor include Bedrock , Thrive Capital , Powerhouse Capital , Lemonade Capital , Riverside Ventures , Amboy Street Ventures , Jackalope Ventures , Bossanova Investimentos , and Niche Capital , as well as other seed - stage VC business firm and backer investors . To appointment , it had raised $ 13.63 million , according toPitchBook . In buying Dipsea , RevenueCat bought out all the investors on the app ’s cap table , while still allowing the app to continue operating its commercial enterprise and fulfilling its mission .
Deal terms were not disclosed , but it was an all - hard currency acquirement , we sympathize , and a mass that ’s been underway since this March . It ’s not probable RevenueCat blew the entireness of its Series C on the app , so this was probably not a big profits for Dipsea ’s investors , from a financial viewpoint .
In time , RevenueCat hopes to examine its success by growing Dipsea ’s subscription business , which it can then apply as an example to its survive customers .
Keegan will bug out her new role at RevenueCat overseeing the Dipsea subsidiary in a couple of workweek , but the company says it will be prepping the demonstration surroundings ahead of that .
