Pricefx CEO Marcin Cichion said the AI-powered platform saw a spike in demand for its technology which helps businesses set prices faster and with more precision due to the coronavirus crisis.
Two weeks ago, the startup, which is based in Chicago, Prague and Munich, raised $65 million from investors, including Apax Digital, boosting its total funding to $131 million.
“We’re enabling people with our software to be reactive and to be proactive and really make sure that they can operate in this crazy environment that we have today,” Cichon told Business Insider.
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The ability for a business to set prices fast and with more precision has been made easier with technology over the past decade.
Pricefx, which launched in 2011, has made it even more convenient for businesses to use so-called price optimization technology with an AI-powered cloud platform.
Two weeks ago, the startup, whose main offices are in Chicago, Munich and Prague, raised $65 million in a Series C round led Apax Digital. Pricefx has raised a total of $131 million in venture capital financing.
CEO and cofounder Marcin Cichon said raising capital in the middle of a pandemic was challenging.
“It was definitely hard,” he told Business Insider. “We started our fundraising at the start of the shutdown. We were really thinking a lot about: should we pause it?”
He said some investors with whom they had begun conversations “got disengaged” and told them: “‘Sorry, we have so much stress right now and we’re looking after our existing portfolio companies and making sure they all survive.'”
But Cichon said he and his team decided to push on because “we saw such an increase in demand for pricing applications” due to the disruption caused by the coronavirus crisis.
Businesses were looking for tools that could help them adapt quickly to what became unstable and unpredictable markets.
“Your supply chain works differently than in a stable economy,” Cichon said. “Your operations work differently. Your margins are completely out of whack right.”
He said the Pricefx platform helps businesses react quickly to the changes, including the sales and pricing moves of competitors.
“We’re enabling people with our software to be reactive and to be proactive and really make sure that they can operate in this crazy environment that we have today,” he said.
“We’re actually using the crisis as a stepping stone for the evolution of the company,” Cichon said.
Here’s the pitch deck Pricefx used to raise $65 …read more
Source:: Business Insider