- What is Splitwise, and how does Splitwise work?
- How does Splitwise make money?
- Premium Subscription (Splitwise Pro)
- In-app Advertising
- Splitwise’s profit and revenue
- What is the Splitwise business and revenue model?
- Splitwise’s funding and valuation
How does Splitwise make money if it’s free to use? Well, here is a full, in-depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Splitwise business model, their profit and revenue, and how Splitwise works.
What is Splitwise, and how does Splitwise work?
Splitwise is a financial mobile and web app that helps users share and split expenses amongst friends and family.
How Splitwise works is: First, users must download the app and create an account. Once signed up, users can then create a group including the friends and family the user will be splitting expenses with. After that, users in the group can start added expenses, split the costs, and pay each other back by sending a PayPal or Venmo payment directly through the Splitwise app.
How does Splitwise make money?
According to Splitwise co-founder, Jonathan Bittner, the app has been downloaded tens of millions of times bringing them millions of registered users since being founded in 2011.
So how does Splitwise make money on those registered users if the service they offer is free?
Below is a breakdown of how much money Splitwise makes and its revenue model. Including how they make their money and how much they from doing it.
Here are the 2 ways of how Splitwise makes money (in 2021):
Splitwise generates revenue for the company in two (2) ways – subscriptions and advertising.
#1. Premium Subscription (Splitwise Pro)
One of the ways Splitwise makes money is by offering a paid subscription version of their free service called Splitwise Pro.
While Splitwise is free to download and use, their paid version offers its own set of perks and added features that the free version does not have such as an ad-free experience, receipt scanning, itemization, default split settings, currency conversion, and more.
Splitwise Pro Cost:
- $2.99 per month
Note: The conversion rate of users upgrading from free to paid is unknown.
#2. In-app Advertising
The other way Splitwise makes money is through advertising to users who do not upgrade to Splitwise’s premium subscription service, Splitwise Pro, as mentioned above.
Splitwise’s profit and revenue
Splitwise has not released any official revenue numbers for the company.
Note: Because Splitwise, Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the Splitwise business and revenue model?
Splitwise makes money through a few revenue models that they combine within their company, they are:
- Freemium (upselling) business model
- Subscription based business model
- Advertising based business model
Splitwise’s funding and valuation
According to Splitwise’s Crunchbase profile, Splitwise has raised $30.2 million over 6 rounds.