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How would this impact the attractiveness to investors as there’s less visibility into revenues, relative to a traditional subscription based business?

And if that were the case, how would this model take-off in the short run when most VCs could probably shy away from such a model?

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Thank you for the question, Sai.

Investors are also excited about this model as:

- Upgrades are higher, it is easier to get customers with a small amount and upgrade it as they go. NRR also becomes higher in that case. The overall revenue is also usually higher.

- There is usually a minimum billing slab attached to it which gives some predictability.

Over time, based on the patterns identified, you can also forecast better.

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True that, and at some level the Usage based pricing also could lead to ‘higher quality’ revenues as the revenues are truly indicative of how useful a certain solution is to the customers vs seat based (where each seat may / may not actually be using the solution)

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