binarypublishItalian startup Smartpricing has raised €13 million (around $14.4 million) in its series A funding round. The funding round, led by the Paris-based venture capital firm Partech, was composed of €11 million in equity and €2 million in bank credit lines.
Other contributors to the round included Gianluca D’Agostino from Techshop, Azimut Digitech Fund backed by FNDX, and the founders of Bending Spoons.
With this new capital, Smartpricing aims to further its goal of becoming the leading provider of innovative rate management solutions for the hospitality segment globally.
Smartpricing’s platform employs machine learning models to offer revenue management software to hotel and apartment hosts. This technology optimises daily operations and pricing for establishments such as hotels, B&Bs, resorts, and vacation rentals.
Currently, over 3,000 hosts worldwide utilise Smartpricing’s platform and have seen an average revenue increase of more than 30%.
Beginning in Italy, the startup plans a significant expansion of its team and product offerings with a goal to generate €100 million in annual revenue in the medium term.
Smartpricing has also been recognised as one of the top 10 most promising startups of 2023 by the Financial Times’ Sifted list and one of Italy’s top 10 startups by LinkedIn.
Founded in 2020, the company uses a proprietary algorithm that calculates optimal pricing by considering a variety of data such as market, saturation, and price trends specific to the geographic area and the host’s business history. Over 2 million reservations for more than 3,000 establishments have been managed by Smartpricing, raising their revenue by over 30% on average.
In a novel development, Smartpricing recently launched a QR code-based payment and extra services management system that more than 200 establishments have already adopted. The company plans to continue investing in technological advances, intending to launch new products, enhance its platform and algorithm, and expand its global user base in the coming year.
Smartpricing aims to be a global leader for revenue management for small and medium-sized accommodations, helping cement its role in the 360-degree hospitality software and fintech sector.
