Boomerang Commerce, a Sillicon Valley-grown and Bangalore-based company providing dynamic price optimisation for online retailers, has raised $8.5 million (Rs 51 crore) in Series A from Trinity Ventures and Madrona Venture Group.

The company prices millions of products for Staples, RadioShack, and other major online retailers of the world. It plans to use the funds to expand its engineering and go-to-market teams, in order to create more retail applications and make this disruptive pricing optimisation technology even more responsive to the exploding world of enterprise e-commerce.

“Price is a vital force driving online purchase decisions, and retailers need to continuously react to competitive price changes, while keeping a firm eye on their profits,“ said GuruHariharan, CEO, Boomerang Commerce.

An ex-Amazon and eBay veteran, GuruHariharan, said that the company is applying portfolio theory, real-time machine learning, and game theory to this complex problem, which enables retailers to compete with bigger players.

“The proof is in the numbers; our customers have seen significant and immediate revenue and profit growth based solely on price optimisation,” he added.

Karan Mehandru, General Partner, Trinity Ventures and Scott Jacobson, Managing Director, Madrona Venture Group are joining Boomerang’s board with this funding.

“In a world where companies like Amazon are changing price and customer experience in real-time to optimise sales, retailers cannot afford to revisiting pricing decisions on a weekly or monthly basis, and hope to survive,” said Scott Jacobson.

"To compete, they need sophisticated technologies like Boomerang’s that enable instantaneous updates based on changing market data. Boomerang’s technology 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,” he added.

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