PriceLabs Inc, a platform which provides pricing and revenue management solutions, on Thursday said it has raised $30 million (around Rs 234 crore) as a part of its Series A funding round from global alternative investment firm, Summit Partners.
The Chicago and Pune-based startup will use the fresh capital to expand team and develop its product to support growing demand for dynamic pricing solutions for the short-term rental industry.
The company declined to disclose its valuation.
Founded in 2014 by Richie Khandelwal, Anurag Verma and Sana Hassan, PriceLabs provides data-driven approach, automation rules and customizations to manage to price and stay restrictions that help the owners and managers of vacation rentals increase revenues with efficiency and ease, the company said in a statement. It claims to power over 150,000 listings across 100 countries.
"We see PriceLabs positioned to serve this growing market with a comprehensive solution designed to deliver return on investment to owners and managers almost immediately. We believe this team has an opportunity to capitalize on an unpenetrated market as they continue to develop and launch innovative products,” said Colin Mistele, managing director at Summit Partners.
“Pricing can be the single biggest growth lever when running any business, particularly in the hospitality space, where most businesses still use archaic methods and static pricing that can leave anywhere from 10-40% of revenue on the table. We built PriceLabs to serve the needs of short-term rental operators, offering a configurable solution that allows operators to combine our AI and algorithms with their own unique knowledge of the local market and property,” said Khandelwal.
Founded in 1984, Summit Partners is a global alternative investment firm that is currently managing more than $37 billion in capital dedicated to growth equity, fixed income and public equity opportunities. So far, it has invested in more than 550 companies across technology, healthcare and other growth industries.
A report by London & Partners and Dealroom.co in March said venture capital (VC) investments in the e-commerce space in India almost trebled in 2021, pushing the country’s rank to number two on the list.