Pump at $25M annualized revenue growing 257% YoY
Jan-Erik Asplund
TL;DR. Traditional MSPs and resellers pooled customer cloud spend to unlock AWS and GCP discounts, but did so through high-touch sales and multi-year contracts, while Pump turns that model into a self-serve billing layer where startups access enterprise pricing with no contracts by sitting in the middle of the transaction and monetizing the spread between what it pays AWS and what it charges customers. Sacra estimates Pump hit $25M in annualized revenue at the end of 2025, up ~257% from $7M at year-end 2024 and up from $500K in March 2024. For more, check out our full report and dataset on Pump.
Key points via Sacra AI:
- Traditional MSPs aggregate customer cloud spend to unlock enterprise discounts, but gate access behind 1–3 year contracts and sales-heavy relationships, while Pump (2022, YC S22) productizes that model as a licensed AWS and GCP reseller where it becomes the billing counterparty, charges customers ~70 cents on the dollar, and pays AWS ~55 cents using a mix of reseller discounts and AI-rotated commitments, capturing the spread as revenue. By passing through ~20–40% savings while retaining a ~15–25% gross margin, Pump effectively offers “free” savings to customers while operating as a low-margin intermediary that scales with total cloud spend rather than seat-based SaaS pricing.
- Scaling through YC and word of mouth, Pump expanded to 1,000+ startups across 22 countries with $150M+ in pooled cloud spend, reaching an estimated $25M in annualized revenue by the end of 2025, up ~257% from $7M in 2024 and ~50x from $500K in March 2024. Compare to CloudZero at $42M ARR in March 2026, up 757% year-over-year, which charges SaaS-style subscription fees based on spend visibility and cost allocation, generating high-margin recurring revenue, versus Pump’s model where revenue is directly tied to cloud spend volume and realized savings, trading margin for deeper control of the billing layer.
- To retain customers past the $1M+/month spend threshold where they can negotiate directly with AWS and GCP, Pump is expanding from its savings wedge into Pump View (spend dashboards), Pump Secure (automated detection of 100+ AWS misconfigurations), and Pump Intelligence (AI SRE and alternative to AWS premium support), positioning itself to replace tools like CloudZero as the system of record for cloud cost and operations. By starting as the lowest-cost way to pay for cloud and layering software on top, Pump is using a low-margin billing wedge to capture spend and then move up the stack into higher-margin FinOps, security, and infrastructure management.
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