Price f(x), a pricing optimization SaaS, has raised €4 million in Series A funding. Leading the round is Prague-based Credo Ventures, and London-based Talis Capital. Noteworthy, this is the first outside funding the European startup has taken since it was founded six years ago and despite being profitable for the last three of those.
Targeting medium and large corporations, Price f(x) offers what it describes as a full-suite price management and CPQ SaaS solution that provides broad and flexible support to the entire price management closed loop cycle of Price Strategy, Controlling, Optimization, Setting and Realization.
If you aren’t familiar with pricing optimisation software, it helps companies accurately define the price of goods across a vast and constantly changing spectrum of variables.
Specifically, CPQ software aggregates these variables, thus enabling companies to configure products or services in the most optimal way (i.e. bundling, upsells, etc.), and price them according to costs, competition and local economic factors.
This end result is that CPQ software can drastically speed up and improve the accuracy of the quoting process to give customers the best price possible in accordance with all of the above factors.
Price f(x) co-founder and CEO Marcin Cichon tells me that with new capital in the bank the plan is to accelerate the startup’s aim to disrupt the struggling price optimization software industry with a much more flexible and commercially fair solution. This will include expanding existing commercial operations in North America, Europe and Asia.
“I would also like to take the opportunity to inform everyone that we will be hiring heavily in our sales and tech teams and will be eagerly looking for exceptional talent around the globe who want to take part in this exciting journey,” he adds.
In terms of competitors, Cichon cites PROS, Vendavo, Zilliant, Navetti, Vistex, and Apttus as the largest, but says that the space is crowded with over 20 larger solution providers and many smaller ones.
The key differentiation of Price f(x), he says, is that it is built on “modern, ultra-flexible technology and architecture” resulting in the startup being able to innovate faster and roll out new features in shorter update cycles, as well as the company’s disruptive business model that requires no long term contracts and is SaaS at its heart.