Revenue management solutions provider PriceLabs on Thursday said it has raised $30 million from US-based Summit Partners.
The minority investment from Summit Partners marks PriceLabs’s first institutional round of funding. With this, Summit Partners’ managing director Colin Mistele will join the board of PriceLabs, the company said in a statement.
Founded in 2014, Chicago-headquartered PriceLabs provides AI-led analytical tools to owners and managers of vacation homes and short-term rentals.
The idea of PriceLabs was born from co-founder Richie Khandelwal’s frustrations while managing personal rental property and the inability to efficiently adjust prices based on changes in demand.
“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,” Khandelwal said in a statement.
Teaming up with friends Anurag Verma and Sana Hassan, the group built a solution designed to address similar challenges faced by small business owners operating in the short-term rental market.
Today, the company claims to be profitable and power over 150,000 listings in more than 100 countries. It intends to use the funds for product expansion in the revenue management solutions category and fuel global team growth.