PriceLabs, a vacation rental revenue management proptech, today announced a $30 million minority growth investment from Summit Partners, according to a press release.
It says the company is already profitable, noting this is its first financing to date, and says funding be used to further develop its revenue management platform and expand its team on a global scale.
“With the support and growth-oriented resources that Summit offers, we are excited to continue our mission of delivering innovation to the short-term rental market and accelerate our global hiring,” said Anurag Verma, co-founder of PriceLabs.
Colin Mistele, Managing Director at Summit Partners, has also joined the PriceLabs board of directors as a result of the funding.
“We see PriceLabs as ideally positioned to serve this growing market with an intuitive, easily customizable and comprehensive solution designed to deliver ROI to owners and managers almost immediately,” Mistele said in the release.
Chicago-based PriceLabs began in 2014 when co-founder Richie Khandelwal faced trouble pricing his own property on Airbnb, and created a pricing algorithm to address his concerns alongside with his friends Anurag Verma and Sana Hassan. The organization has since grown to use AI and other analytical tools to aid managers and small business owners with vacation and short-term rental revenue management.
“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,” said Richie Khandelwal.
PriceLabs’ pricing solution utilizes local data to perceive demand changes based on the particular property and research on “local market conditions” to adjust its pricing. The company says the prices are updated automatically through integrations with more than 70 property management software platforms.
“Our product democratizes powerful tools that, historically, have only been available to large hospitality businesses,” said Hassan, in the release. “From an individual host seasonally renting their apartment in Paris to a multi-thousand unit vacation rental manager in Florida, we’ve built a solution that is easy to use, affordable, and integrates seamlessly with the software they’ve already adopted.”
In 2021 PriceLabs won SaaSBoomi’s 2021 Bootstrapped Startup of the Year award and claims to now operate in over 100 countries with more than 150,000 listings.