Pactum, the Estonian-founded artificial intelligence platform that enables companies to automate personalised commercial negotiations, has raised USD11 million in a Series A investment round; the money will allow the startup to scale up the deployment phase of its platform.
The funding brings the company’s total investment to USD15 million.
The most recent round was led by Atomico, an investment fund; with participation from Metaplanet, an early-state investment fund; Checkout.com CTO Ott Kaukver; TransferWise chairman and co-founder Taavet Hinrikus; and Teleport co-founder Sten Tamkivi.
Pactum will use the funding to scale up the deployment phase of its artificial intelligence-based automated negotiation platform in response to what the company calls a “significant demand” in a statement.
“The company aims to rapidly expand its team to partner with a number of major organisations, further hone its automated technologies and expand the application of its platform into a range of new industries,” it said.
Any company could benefit from the platform
“As reaching supplier agreements with a computer system becomes more normalised, Pactum’s technology can be easily deployed in other use cases such as employment contracts, licensing or rental agreements.”
The Estonian-founded company says it “unlocks cash flow and untapped value rather than generating simple efficiencies”.
“In a single departmental use of a Fortune 500 company, Pactum was able to unlock working capital at a rate of USD1.5 million per month. Following successful partnerships with Fortune 500 customers such as Walmart, major CPG firms and industrial distributors, Pactum is today announcing the general availability of its flagship automated Negotiation-as-a-Service (NaaS) offering.”
“While other AI companies focus on reducing labour costs, Pactum focuses on adding value to the bottom line. All businesses make purchases, which means that any firm will be able to benefit from our automated Negotiation-as-a-Service offering,” Martin Rand, the CEO and co-founder at Pactum, said in a statement.
Inefficiencies in contract negotiation cost money
“Although this technology has so far been limited to the most innovative enterprises, Pactum will open the door to all businesses to benefit from AI’s value generation potential – starting with Fortune 500 companies but by no means ending there.”
Estimates by KPMG, a professional services network, indicate that 17%–40% of the value of vendor deals is lost due to inefficiencies in the contract negotiation process, according to Pactum.
Pactum was founded in 2019 by Estonian entrepreneurs Martin Rand, Kaspar Korjus and Kristjan Korjus and it’s based in Mountain View, California. The company’s artificial intelligence-based system helps global companies autonomously offer personalised, commercial negotiations on a massive scale.
Cover: Pactum’s founders Kristjan Korjus, Martin Rand and Kaspar Korjus. Images by Pactum.