Pricefx has completed its Series B fund raising round with an additional €23 million in funds led by Digital+ Partners. This round is cumulative to that raised nearly 12 months ago in December 2018 when PriceFx raised €23 million in a round led by Bain & Company and Digital+ Partners. Talis Capital also participated in the Series B round. It previously invested in another split funding round in January 2018 and December 2016.
Ron Kermisch, partner and director at Bain & Company and the company’s global pricing product lead noted: “Over the last year, we have been collaborating with Pricefx on a new disruptive offering for the market. We are very excited about its upcoming innovation and happy to see Pricefx executing its strategy to become the de-facto software standard in pricing.”
Pricefx has enjoyed considerable success of the last year with exceptional growth in Q1 and Q2. In the last 12 months its valuation has nearly tripled. This means that while the sum raised is roughly the same, the number of shares acquired could be much lower. Pricefx has also achieved Gold-Level Status for SAP® PartnerEdge® Build, the first to do so. The company now has more than 90 customers across 37 countries and targets both B2B and B2C markets.
What is Pricefx
Pricefx consists of several modules including:
It provides businesses with optimised pricing through the application of machine learning models. Its cloud native solutions support the capability to deliver Price Optimisation, Management (PO&M) and Configure-Price-Quote (CPQ) solutions to enterprises.
Customers are enthusiastic. Enrico Karg, Head of Customer Journey Driving Project at Eventim commented: “The pricing platform is very powerful, web based and allows or almost every thing required by our customers. We are very happy we decided to partner with Pricefx”.
What will it do with the money?
The inference is that it will continue to invest in R&D. Another options is strategic acquisitions as it looks to strengthen its product and extend its global reach.
Marcin Cichon, CEO and co-founder of Pricefx commented: “This new funding will allow us to further expand our platform capabilities, add new functionality and introduce several new, game-changing products to the market in 2020.
“We anticipate continued global expansion through both organic and partner-enabled growth, as well as strategic projects. Our investors are excited about our path forward, and this subsequent investment helps to secure their positions ahead of our further expansion.”
Tom Fencl, CFO of Pricefx gave a slightly clearer picture of its intent saying: “We are experiencing great momentum, particularly in the United States. This funding allows us to more than double our investment in sales and marketing in 2020. As we grow, we are also beginning to look at potential acquisitions to expand our functional footprint in the area of optimization and artificial intelligence as well as offer higher value to our customers through specialized industry knowhow and expertise.”
Enterprise Times: What does this mean
The CPQ industry is awash with vendors. Rapid growth is expected across the sector in the next three years according to Gartner. That Bain & Company is not just investing in but working with Pricefx is a significant endorsement of its product and potential.
There are other major players in this market such as Apttus, now backed by Thoma Bravo. However, it will be interesting to see how quickly Pricefx grows its customer based. Pricefx is a company to watch. With a new “disruptive” product set to enter the market it will be interesting to see how quickly prospects consider the solution. In addition competitors may also react to the news.