We are featured in Forbes! Read our story.
In the fast-paced business world, companies are constantly striving to stay ahead of the game. One area where this is particularly crucial is pricing. The impact of pricing changes on a company's financial health is undeniable. Research conducted by McKinsey highlights this, demonstrating that even a modest 1% enhancement in pricing can yield a remarkable 8% boost in profitability. Moreover, customers expect custom pricing options these days. Pricing flexibility not only appeals to customers who are willing to pay but also fosters long-term loyalty, resulting in reduced customer churn and increased customer lifetime value (CLV). According to a survey by Salesforce, 70% of consumers are more likely to become repeat customers if a company offers personalized pricing options.
The numbers speak for themselves, showcasing the substantial benefits that can be derived from pricing optimization efforts. However, businesses require the flexibility to implement pricing changes quickly and efficiently.
Togai + Funding = Accelerating B2B Pricing Success
Togai is a metering and pricing platform, and we help B2B companies adopt, automate, and iterate any pricing changes. By connecting to existing quote-to-cash systems, Togai enables "no-code" pricing changes, making the process lightning-fast and hassle-free.
We are thrilled to announce the successful completion of our seed funding round of $3.1 million. The funding was led by Together Fund, with participation from Boldcap, Core91, and notable angels like Prasanna, Co-founder of Rippling.
Our Story
Togai was founded by Abhishek Rajagopal, Aravind Sriraman, and Tholkappiyan Velavan, who previously ran Hypto, a highly successful payments API platform that processed over 100 million transactions in just two years. Their firsthand experience highlighted the shortcomings of existing billing and monetization tools. To name a few...
- Subscription-based pricing didn't capture the value they provided to their customers
- Billing systems didn’t support the volume of transactions being processed
- The sales team was restricted from drafting custom pricing because of inflexibility within their existing tools
- Customers want to see consumption patterns and cost analytics
They decided to solve this problem by building a modern, flexible, and scalable monetization stack that can go live in a matter of days, not months.
(Read more about our story here.)
Why are pricing changes hard to make?
Implementing pricing changes can be a complex and time-consuming endeavor for businesses.
The Complexity of Existing Systems
Many businesses have complex pricing structures and systems in place, which can make it difficult to introduce and implement changes. These systems may involve multiple software platforms, interconnected processes, and intricate calculations, making it time-consuming and error-prone to update pricing.
Accuracy and Consistency
Pricing changes require accuracy and consistency to ensure that the new prices are reflected correctly across various channels and transactions. Any mistakes or inconsistencies can lead to customer dissatisfaction, financial losses, and legal issues.
Integration with Existing Processes
Pricing changes often need to be integrated with other business processes, such as quoting, invoicing, and revenue recognition. Ensuring seamless integration and alignment of these processes with the new pricing can be complex.
Communication and Customer Impact
Pricing changes can have a direct impact on customers, and effective communication is crucial to manage expectations and minimize disruptions. Businesses need to communicate the changes clearly, address customer concerns, and ensure a smooth transition to the new pricing without negatively impacting customer relationships.
Also Read: 2022, a year in review with Togai’s founders
Analysis and Reporting
It is essential to analyze the impact of pricing changes on sales, revenue, profitability, and customer behavior. This requires robust reporting and data analysis capabilities to gain valuable insights and make informed decisions for further pricing optimizations.
Overcoming these challenges requires careful planning and coordination across teams. More importantly, it requires the right tools and systems to implement pricing changes effectively and efficiently. That's where Togai comes in.
What does Togai help B2B Businesses do?
With Togai, businesses can implement any pricing changes within hours, eliminating the need for complex engineering efforts. Togai seamlessly integrates with existing tools such as CPQ, CRM, Billing, Usage analytics, and Revenue recognition systems, providing complete visibility and alignment for any pricing update. From generating a sales quote to tracking customer usage, generating an invoice, completing the payment, and reporting, Togai streamlines the entire process.
From its launch in April 2022 until now, we have experienced quite the journey. Some notable highlights include
- Our no-code usage metering solution, metering.ai, achieved an impressive second place on Product Hunt's Product of the Day list, with over 300 users leveraging their product to automate their metered billing.
- Our monetization marketplace is currently in beta, with more than ten apps and integrations helping users visualize the flow, identify leakages, and address gaps in their entire quote-to-cash process, all without the need for any engineering effort.
We have helped a series C, conversational AI company simplify its credit management and ensure seamless reconciliation with its billing system while guaranteeing revenue and invoice visibility and accuracy. We have supported Appsmith, an open-source dev tool company, in implementing usage-based pricing effectively, supporting different pricing models while handling high-volume data reliably. By leveraging Togai, Appsmith was able to accelerate its time-to-market from months to just days.
“When we decided to launch usage-based pricing, we evaluated tools that provided the flexibility to support different pricing models along with the reliability of handling data at high volume. Togai's solution first approach solved our different pricing & billing scenarios not just for today but also for the future and accelerated our time-to-market from months to days." —Nikhil Nandagopal, Co-founder and CPO of the open-source dev tools company, Appsmith.Â
Our Vision
As we look to the future, our vision at Togai is clear. We recognize the growing significance of pricing managers in today's complex B2B markets. These professionals play a vital role in developing data-driven pricing strategies, assessing market dynamics, and optimizing pricing structures. With our recent round of funding and the support of our investors, we are committed to continuing our journey of building best-in-class, end-to-end monetization solutions for the expanding B2B segment.
Moreover, with the emergence of generative AI as the next major technological advancement, companies need to adapt to their customers' changing purchasing experiences. Traditional approaches such as subscription billing are no longer sufficient. The concept of "subscribers" loses meaning since code is solving customers' problems. Consequently, a reevaluation of pricing models is necessary. Our goal is to empower businesses with the tools and insights they need to make data-driven pricing decisions, maximize growth, and drive profitability.
We are excited to be at the forefront of this evolution, helping businesses thrive in the ever-changing landscape of pricing.
