Flexprice, a New Delhi-based open-source billing platform for AI-native companies, has raised $1.5M in seed funding led by Shastra VC. The platform lets AI teams run usage-based, credit-based, and hybrid pricing models with real-time metering, invoicing, and LLM/GPU cost tracking. The capital will fund expansion into the US and Europe while extending product capabilities into revenue recognition and financial reporting.
AI Usage Pricing Breaks Legacy Billing
The timing aligns with accelerating demand for flexible monetization. Hybrid pricing adoption jumped from 27% to 41% in 12 months, while 78% of usage-based pricing adoptions occurred in the last five years. Lago raised $22M to build open-source billing infrastructure. Flexprice differentiates through AI-specific credit systems and sub-50ms real-time scalability on an open-source stack.
Traditional Systems Fail AI Workloads
AI products generate unpredictable usage patterns across tokens, API calls, and GPU hours. Flexprice currently processes over 20 billion metering events monthly. Most legacy billing tools require custom engineering sprints for each pricing change and cannot cleanly handle hybrid credit and usage models without spreadsheets or brittle logic.
Open-Source Stack Targets AI Monetization
Flexprice built a fully open-source, self-hostable platform using Go, ClickHouse, Kafka, and Temporal. It supports pay-as-you-go, prepaid credits, volume tiers, and hybrid pricing with no-code UI and integrations to Stripe, Adyen, and Razorpay. Competitors like Lago and Octane focus on broader SaaS use cases; Flexprice prioritizes AI/agentic workloads and developer-first tooling such as Prompt to Plan, which converts natural language into working billing configurations.
“What stood out about Flexprice was the strength of the engineering vision - an open-source, real-time billing platform purpose-built for modern AI products.” — Avijeet Alagathi, Shastra VC
India VC Syndicate Backs AI Infrastructure
Shastra VC led the round with participation from repeat backer TDV Partners and angel Anupam Mittal. Shastra’s focus on frontier tech and early-stage AI infrastructure matches Flexprice’s positioning. TDV had previously led the company’s pre-seed round, signaling continued conviction in the team’s ability to capture the shift from seat-based to outcome-based pricing.
Usage-Based Market Expands Rapidly
The usage-based billing software market is projected to grow from $6.8 billion in 2025 to $18.4 billion by 2034 at 11.7% CAGR. Structural drivers include AI-native companies moving away from predictable per-seat models, creating demand for real-time metering and hybrid pricing tools. Flexprice competes with closed platforms like Metronome and Orb while offering an open-source alternative that avoids vendor lock-in.
Product Velocity Signals Strong Momentum
With deployments already handling production scale, Flexprice plans to expand teams in the US and Europe. Recent product releases include Environment Cloning for safe pricing experiments and Prompt to Plan for rapid billing setup. The company also continues hiring backend engineers and product analysts to support growth beyond core billing into full revenue automation.