Cheddar

About Cheddar

Cheddar Inc. positions itself as a financial technology firm focused on simplifying the billing process for businesses operating with a usage-based model. Founded in 2021, the company targets the burgeoning sector of SaaS and API companies that charge customers based on consumption rather than a flat-rate subscription. This market is characterized by complex billing requirements, where tracking and invoicing for granular usage metrics can be a significant operational hurdle. Cheddar's platform is designed to automate this entire workflow, from metering usage events to generating accurate invoices and collecting payments.

The company was established by a team with direct experience in the challenges of consumption-based billing. Co-founder and CEO Robert Kamradt previously served as the first engineer at companies like Nylas and Acute.io, where he was responsible for building and maintaining the billing systems. This firsthand exposure to the complexities and engineering resources required to manage usage-based pricing models informed the core value proposition of Cheddar. Co-founder and CTO Brecht DeRooms brings a complementary skill set, having also experienced the intricacies of building scalable software infrastructure.

Cheddar's core service is a comprehensive billing platform that provides developers with the tools to implement and manage metered pricing. Key features include usage tracking, which allows for the real-time aggregation of consumption data, and a rating engine that calculates charges based on predefined pricing plans. The system also handles invoicing, dunning management for failed payments, and provides analytics on key revenue metrics like MRR and churn. By offering this as a managed service, Cheddar aims to reduce the engineering overhead for its clients, allowing them to focus on their core product development rather than on building and maintaining complex billing infrastructure. The business model is a tiered subscription service, with pricing based on the client's revenue volume processed through the platform.

The company has secured external funding to accelerate its growth and product development. In early 2022, Cheddar announced a $6.3 million seed funding round. This investment was co-led by GGV Capital and Fuel Capital, with participation from other notable investors, signaling confidence in the company's approach to solving a critical pain point for a growing segment of the software industry.