RevenueCat, a subscription management platform that recently raised $12 million in funding, has made a surprising move by acquiring the app Dipsea, which offers subscriptions to “spicy” audiobooks. This acquisition marks RevenueCat’s first foray into owning an app, rather than adding tools to its existing platform. The decision to acquire Dipsea was driven by the desire to use the app as a testing ground for new features and functionality, as well as to align with RevenueCat’s philosophy of transparency and innovation.
Dipsea’s app specializes in producing romantic fictional tales from the female perspective, working closely with authors, narrators, and ElevenLabs’ AI voice technology. With nearly 94,000 paying subscribers and an annual recurring revenue of close to $6 million, Dipsea has established a successful business model in the competitive subscription-based audiobooks market. However, as a venture-backed startup facing challenges in finding an exit strategy, the opportunity to be acquired by RevenueCat presented a mutually beneficial solution.
Jacob Eiting, co-founder and CEO of RevenueCat, emphasized the strategic importance of acquiring Dipsea to gain firsthand experience in operating a live app and staying updated on the evolving landscape of subscription-based apps on platforms like the App Store. With the exponential growth of the subscription economy and increased competition among app developers, RevenueCat aims to leverage Dipsea’s user base and revenue streams to refine its tools and services for its existing customers.
The acquisition of Dipsea includes bringing on board CEO and co-founder Faye Keegan and her team to continue managing the app and integrating RevenueCat’s new tools for testing. By owning an app, RevenueCat can experiment with innovative techniques and showcase its capabilities to potential customers, demonstrating the value of its platform and services in a real-world setting. The collaboration between RevenueCat and Dipsea opens up new possibilities for growth and innovation in the subscription-based content market.
Subheadings:
Strategic Acquisition for RevenueCat
Empowering Subscription Growth
Collaborative Future for RevenueCat and Dipsea
Keegan expressed her excitement about joining forces with RevenueCat to enhance Dipsea’s offerings and provide users with high-quality content while leveraging RevenueCat’s expertise in subscription growth. The acquisition deal, conducted in cash and finalized in March, involved buying out all investors on Dipsea’s cap table, allowing the app to maintain its operations and mission under RevenueCat’s ownership.
As RevenueCat looks ahead to the future, the company aims to leverage Dipsea’s subscription business growth as a success story to showcase to its existing customers. By demonstrating tangible results in terms of subscriber numbers and revenue, RevenueCat hopes to validate its capabilities and enhance its reputation as a leading subscription management platform in the industry.
In the coming weeks, Keegan will transition into her new role overseeing the Dipsea subsidiary within RevenueCat, with plans to optimize the demo environment for showcasing the app’s performance and potential growth. With a focus on innovation, collaboration, and user-centric solutions, RevenueCat and Dipsea are poised to chart a new course in the subscription-based content market, setting a precedent for industry best practices and customer satisfaction.
