Boomerang Commerce, a Bangalore based company which provides a dynamic price optimization product to online retailers, has raised $8.5 million in Series A funding from Madrona Venture Group and Trinity Ventures.
The company will be using this investment to build retail applications on top of its platform and expand its engineering & go-to-market team. Post this investment, Scott Jacobson from Madrona Venture Group and Karan Mehandru from Trinity Ventures will be joining Boomerang’s board.
Boomerang Commerce had released its flagship product Dynamic Price Optimizer in May this year. This enables e-commerce websites optimize the price of its products in real-time based on various criteria such as revenue, sales volume and profit among others and compare it with those offered by competitors.
How it works: The product is integrated into a subscriber’s e-commerce platform and it measures over 100 variables per SKU internally and externally to decide an optimal price point for a product. The system then runs numerous pricing strategies in parallel (A/B tests), and makes pricing decisions across hundreds of thousands of SKUs to maximize a business goal.
This is significant because an average e-commerce player changes its prices only once a month or once in three months and therefore cannot compete with players like Amazon which has been using an internal analytical platform that helps them take optimized pricing decisions and update its pricing every 15 minutes. More on how the product works here.
Boomerang Commmerce mentions that the product was in private beta for the last six months and is now available publicly. It offers this product on a SaaS model and apparently charges an average seven figures annually. It’s clientele includes Staples in US & Canada, Sears in Canada, RadioShack, DHGate and Groupon Goods among others. Boomerang Commerce is headquartered in the Silicon Valley and has a product development center in Bangalore.
Data analytics company DataWeave also has a competitive intelligence product called PriceWeave for e-retailers, brands, and manufacturers. It provide features such as pricing intelligence, assortment intelligence, reporting & analytics, tracking promotions, among others to clients. Dataweave co-founder Karthik Ramesh had earlier told Medianama that PriceWeave contributes the maximum revenue for the company.
The company had raised Rs 1.5 crore seed funding from Blume Ventures, TLabs, 5ideas Startup Superfuel, Meta Studio Advisors and a group of angels in April last year.