Price f(x), a company specializing in pricing optimization SaaS, has raised €4 million in Series A funding. The round was led by Prague-based Credo Ventures, and London-based Talis Capital. It is interesting to note that this is the first outside funding the European startup has taken since it was founded six years ago, even though it proved profitable for the last three of them.
Making medium and large corporations its target, 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.
Pricing optimization software, in the simplest terms, helps companies accurately define the price of goods across a vast and constantly changing spectrum of variables.
Specifically, CPQ software aggregates these variables, therefore allowing 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, with the end result being 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.
According to Price f(x)’s co-founder and CEO Marcin Cichon, 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. He added,
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.
As for its 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.
What sets Price f(x) apart, according to Cichon, is its foundation in “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 at its core, it remains SaaS. Matus Maar, partner at Talis Capital said,
Price f(x) have created what we feel to be a truly market-leading product, which is a genuine reflection of the team and expertise behind it. We are extremely positive about the journey ahead of Price f(x) and are proud to be part of it.