Buynomics, the SaaS platform helping enterprise clients with their business decisions, announced today that it has raised a €13 million Series A round. The new funding will be used to extend Buynomics’ lead in predicting consumer behavior in the areas of revenue management and commercial decisions, grow its product and commercial teams, and expand into the US market. This latest funding round was led by global software investor Insight Partners with participation from existing investors LaFamiglia, Seedcamp, Dieter von Holtzbrinck Ventures (DvH Ventures,) and Tomahawk.
Based in Cologne, Germany, Buynomics uses machine learning (ML) and behavioral economics insights to simulate how consumers make purchasing decisions. Currently, many revenue management and marketing teams rely on overly simple tools that use price elasticities and customer segmentation to understand how consumers respond to changes in offers. These methods are rooted in economic tools developed more than 150 years ago and little improved since then. Buynomics has developed virtual customer technology that models the preferences and purchasing decisions of large groups of individual customers. This technology allows Buynomics to take full advantage of the latest developments in ML, integrating large amounts of data from a variety of sources such as transactional or survey data. This results in unprecedented precision and the ability to cover clients with a much broader range of revenue management functions, including optimization of price changes, promotions, and product innovation.
“In this dynamic environment, where brands are trying to rethink their operating models, Buynomics enables a deeper understanding of the value consumers to place on individual products,” said Ingo Reinhardt, co-founder, and CEO of Buynomics. Businesses today need to be more responsive to competitive changes or cost increases and to be able to identify growth opportunities. Conventional – often Excel-based – solutions are no longer sufficient. “As business pressures continue to mount, Buynomics aspires to become the operating system for all commercial decisions,” he adds.
“Buynomics offers a simulation-based pricing platform to help companies optimize sales and profits. Large companies have typically relied on consultants or in-house solutions to drive these decisions. However, Buynomics’ software solution for bid optimization generates significantly higher ROI than consultants in empowering clients to run their own pricing simulations,” said Max Wolff, Principal at Insight Partners. “Buynomics’ leading technology and its proven traction on all Markets have already differentiated them and we look forward to working with the Buynomics team as they grow to develop the operating system for all commercial decisions.”