TL;DR:
- Smartpricing, an Italian startup, successfully raised €13 million in a Series A funding round.
- The funding comprises €11 million in equity and €2 million in bank credit lines.
- Partech, a leading Paris-based venture capital firm, spearheads the investment, with notable participation from other investors.
- Smartpricing plans to become a global leader in offering innovative rate management solutions to the hospitality industry.
- Their AI-powered technology optimizes pricing for hotels, B&Bs, resorts, and vacation rentals, streamlining operations.
- The company has expanded its services to 17 countries and aims for €100 million in annual revenue.
- Smartpricing garners recognition as one of Italy’s top startups, with over 3,000 hosts benefiting from their solutions.
- Partnerships with Partech and Techshop signify strong growth potential for the company.
- Smartpricing uses proprietary algorithms to enhance hospitality business performance.
- The startup has introduced a QR code-based payment and extra services management system.
- Future plans include further technological advancements and global expansion.
Main AI News:
Smartpricing, the innovative Italian startup specializing in hotel and apartment revenue management software powered by machine learning, has successfully concluded a substantial €13 million Series A funding round. This investment, consisting of €11 million in equity and €2 million in bank credit lines, marks a significant milestone in the company’s journey towards reshaping the hospitality industry.
Leading the charge in this transformative funding round is Partech, a prominent Paris-based venture capital firm. Simone Riva, Senior Principal, and Philippe Collombel, Co-Founding Partner at Partech Venture, have chosen Italy as their debut investment destination through the International Fund of Funds program, backed by CDP Venture. Other notable participants in this round include Techshop’s Gianluca D’Agostino, the lead investor from the 2022 seed round, Azimut Digitech Fund, supported by FNDX, and the visionary founders of Bending Spoons.
Smartpricing, fueled by this substantial funding injection, is poised to ascend as an industry leader, offering groundbreaking rate management solutions and more to hospitality businesses across the globe. Their AI-powered technology is meticulously designed to optimize pricing for a diverse array of establishments, from hotels and B&Bs to resorts and vacation rentals, streamlining daily operations and driving profitability.
CEO and co-founder Luca Rodella expressed his enthusiasm for the partnership with Partech, stating, “We had a lineup of potential lead investors, but Partech stood out with their market expertise and the approach of Simone and the people involved in the process. They are the perfect partners to fuel our high aspirations and global expansion goals. Notably, this round, in a challenging investment climate, was one of our region’s largest, spotlighting a 100 percent Trentino company’s impressive achievements. We’re just at the beginning of a journey that will lead us to revolutionize how tens of thousands of facilities worldwide operate with innovative solutions currently unmatched in the market.”
Smartpricing’s remarkable growth trajectory has seen the company extend its services to 17 countries, with a particular focus on the DACH region and Italy. With an ambitious target of achieving €100 million in annual revenue in the medium term, the company plans to significantly expand its team and introduce innovative products, solidifying its position in the 360-degree software and fintech vertical for the hospitality industry.
Acknowledging their extraordinary achievements, Smartpricing has been recognized as one of Italy’s 10 most promising startups of 2023 by the Financial Times’ Sifted list, compiled by several Venture Capital firms. It has also earned a spot among Italy’s top 10 startups by LinkedIn. This funding round serves as a beacon of success in the challenging startup investment landscape, highlighting Smartpricing’s exceptional trajectory. Already, over 3,000 hosts worldwide have harnessed Smartpricing’s capabilities, resulting in an average revenue increase of over 30 percent.
Simone Riva, Senior Principal at Partech, expressed his excitement about collaborating with Smartpricing, saying, “We are excited to collaborate with Luca, Eugenio, and Tommaso to create a global leader in the hospitality industry software. Over the past 12 months, the team has shown exceptional execution skills, strategic clarity, and ambition on par with other success stories in our portfolio. We believe Italy, with its burgeoning hospitality market and fragmented software landscape, is an ideal starting point. Our funding aims to consolidate our position in the Italian and German-speaking markets and venture into new high-potential territories, as we’ve successfully done with other SMB software investments.”
Gianluca D’Agostino, Co-founder and Managing Partner of The Techshop, emphasized their ongoing journey with Smartpricing, stating, “The journey started in spring 2022 with the Smartpricing founders continues, the goals become even more ambitious. After leading the 2022 Seed round, we’ve been part of the company’s rapid growth and have helped bring about this exciting new funding chapter. We’re eager to join forces with a European-level investor like Partech to further nurture Smartpricing’s SaaS evolution and expansion in Italy and beyond.”
Founded in 2020 in Arco, Trentino, Smartpricing relies on a proprietary algorithm that processes various data types, including market trends, saturation levels, and pricing dynamics in specific geographic areas and the accommodation’s historical data. This data is used to calculate the optimal price, thereby enhancing the performance of hospitality businesses. The company’s objective is to maximize occupancy rates and average room prices simultaneously, tailoring pricing strategies to each property’s unique characteristics, target market, and external variables. To date, Smartpricing has managed over 2 million reservations for more than 3,000 establishments, resulting in an average revenue increase of more than 30 percent. The company has also introduced a novel QR code-based payment and extra services management system, which has already been embraced by over 200 facilities.
Looking ahead to 2024, Smartpricing is committed to further technological advancements, introducing new products, enhancing its algorithm and platform, and expanding its global user base. Their ultimate goal is to emerge as the global frontrunner in revenue management for small and medium-sized accommodations, cementing their role in the 360-degree hospitality software and fintech sector.
Conclusion:
Smartpricing’s substantial funding and strategic partnerships position it as a formidable player in the evolving hospitality revenue management market. With their innovative technology and ambitious growth plans, they are poised to disrupt the industry and offer valuable solutions to businesses worldwide, ultimately reshaping how accommodations optimize pricing and operations.
