Boomerang Commerce Lands $8.5 million in Series A from Madrona Venture Group and Trinity Ventures to Help Retailers Compete with Amazon Staples, Sears, RadioShack and Others Leverage Boomerang Analytics Platform to Adjust Prices Dynamically on Their Ecommerce Sites to Grow Revenues And Profits
SANTA CLARA, Calif., July 16, 2014 /PRNewswire/ -- Boomerang Commerce today announced it has closed $8.5M in Series A financing from Trinity Ventures and Madrona Venture Group to help online retailers leverage real-time analytics to drive their business. Boomerang's first application, Dynamic Price Optimizer drives, in real-time, arguably the most important element of online sales – price. The application, which became generally available today, has already helped several multi-billion dollar retailers grow their online revenue by an average of 5%.
Boomerang Commerce plans to use the financing to aggressively expand its engineering and go-to-market teams, and to build additional retail applications on top of its platform. Karan Mehandru from Trinity Ventures and Scott Jacobson from Madrona Venture Group are joining Boomerang's board in conjunction with the financing.
Analyzing more than 100 discrete data points per SKU, including competitors' prices, Boomerang's Dynamic Price Optimizer helps retailers re-price millions of products in real-time to balance price perception and profitability. Price Optimizer tests, measures and implements pricing strategies on a continuing basis; leveraging optimization criteria selected by the retailer. Early customers include Staples, Sears, DHGate, Groupon Goods and RadioShack.
"Price is a key factor driving online purchase decisions, and retailers need to continuously react to competitive price changes while keeping a firm eye on their profits," said Guru Hariharan, Amazon and eBay veteran, the founder and CEO of Boomerang Commerce. "We are applying portfolio theory, real-time machine learning and game theory to this complex problem, enabling retailers to compete like never before. The proof is in the numbers; our customers have seen significant and immediate revenue and profit growth based solely on price optimization."
"In a world where companies like Amazon are changing price and customer experience on a real-time and automated basis to optimize sales, retailers can't afford to make manual decisions, revisiting them on a weekly or monthly basis, and hope to survive," said Scott Jacobson, managing director, Madrona Venture Group. "To compete, they need sophisticated technologies like Boomerang's that enable instantaneous updates based on changing market data. Guru and his team have developed technology that helps level the playing field, leveraging hundreds of millions of data points to help retailers automate and accelerate their decision-making to drive profitable growth."
"Boomerang Commerce is poised to democratize retail analytics by combining the power of big data and machine learning with an easy to deploy SaaS solution," commented Karan Mehandru, general partner, Trinity Ventures. "The customer traction and interest clearly prove this is the right product at the right time, targeting a huge unmet need. We are thrilled to partner with Guru and his team to fuel the next phase of growth for the company."
Boomerang Commerce is headquartered in the Silicon Valley and has a product development center in Bangalore. Boomerang was featured as one of the 6 finalists at TechCrunch Disrupt 2014.
About Boomerang Commerce
Boomerang Commerce powers competitive pricing and assortment decisions for online retailers. Customers include the fastest growing Internet Retailer 100 ecommerce and multi-channel retailers. Through dynamic pricing and assortment expansion, Boomerang Commerce has driven millions in revenues and margins for customers. Boomerang Commerce was a TechCrunch Disrupt Finalist in 2014 and was rated top 100 big data companies in the world by CIO Review.
About Trinity Ventures
Trinity Ventures is a boutique, early stage venture capital firm dedicated to partnering with passionate entrepreneurs to transform revolutionary ideas into reality. With over $1 billion under management, Trinity focuses on early stage and seed technology investments with particular emphasis on Digital Media, Social and Mobile Commerce, Cloud/Mobile Infrastructure and Software-as-a-Service. Trinity Ventures has invested in more than 100 ventures, including such leading companies as 21Vianet, Affinity Labs, Aruba Networks, BeachMint, Bix, Blue Nile, Crescendo Communications, Extreme Networks, Forte Software, Infoblox, IntruVert Networks, KIXEYE, LoopNet, Modulus Video, Network Alchemy, Photobucket, SciQuest, Speedera Networks, Starbucks, Sygate Technologies, Trion Worlds, Wall Data, and Zulily.
About Madrona Venture Group
Madrona (www.madrona.com) has been investing in early-stage technology companies in the Pacific Northwest since 1995 and has been privileged to play a role in some of the region's most successful technology ventures. The firm invests predominately in seed and Series A rounds across the information technology spectrum, including consumer Internet, commercial software and services, digital media and advertising, networking and cloud computing, and mobile. Madrona manages approximately $1 billion and was an early investor in companies such as Amazon.com, Apptio, Isilon Systems, and Redfin.
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SOURCE Boomerang Commerce