How Libeo 3x’ed its ARPU in 18 months by shifting upmarket

Learnings from Libeo’s Product strategy

Jun 12, 2025

Hey, I’m Timothe, cofounder of Stellar & based in Paris.
I’ve spent the past years helping 500+ startups in Europe build better product orgs and strategies. Now I’m sharing what I’ve learned (and keep learning) in How They Build.

🔍 TL;DR

Company: Libeo (Seamless B2B Payments)
Challenge: Low revenue per user
Solution: Optimized payment workflows & premium features
Impact: ARPU tripled in 18 months
Takeaway: Strategic payment flow enhancements drive significant revenue growth

Context

Today, I’m breaking down Libeo and how to tackle low ARPU by optimizing payment workflows and introducing premium features, with key takeaways you can start applying tomorrow. Let’s dive in!

Product 101 for Executives
ARPU: Average Revenue Per User
Shifting upmarket: Targeting larger or more sophisticated customers

Disclaimer: The organizational choices and technical solutions shared in this newsletter aren’t meant to be copied and pasted as-is. Always keep your company’s context in mind before adopting something that works elsewhere! 😊

The Company

Libeo simplifies B2B payments by allowing businesses to pay and get paid effortlessly without IBAN entry or manual reconciliations. Their solution streamlines financial operations for SMBs and enterprises alike.

🥵 Their challenge : Low ARPU

Libeo faced a challenge in increasing its Average Revenue Per User (ARPU). This issue led to:

Limited monetization from existing users
Difficulty in positioning the product on the market
Suboptimal user engagement with payment tools

😢 How the Problem Affected Libeo’s Performance

Stagnant revenue per user
Low adoption of premium features
Lower Commitment from lower ARPU clients

💡 Their idea to solve the problem

To address this challenge, Libeo decided to :

Introduce new premium features with clear value propositions
Improve user experience to drive higher usage and conversion
Transform Marketing messages & sales processes to address larger clients with higher ARPU

🤷🏼‍♂️ Why would it work

Users need seamless, valuable financial tools, and willingness to pay rises with perceived efficiency gains

✅ Their decisions to make it work

🍾 The results

Timothe’s recommendations to nail your move upmarket:

1. Add sales after product-market fit and bottoms-up traction
Don’t hire sales too early. Prove strong self-serve usage and retention first. Then layer sales to convert larger accounts and expand revenue.

2. Segment by readiness, not just company size
Target companies with usage patterns that signal they’re ready for sales (high seats, usage breadth, or cross-team adoption) — instead of going after logos just because they’re “enterprise.”

3. Instrument your product to fuel Sales
Use product usage data (e.g. number of active users, feature adoption) to prioritize and personalize outbound sales. Let your product tell you who’s ready to buy more.