[Funding Alert] Property price management startup PriceLabs raises $30m from US-based Summit Partners

Chicago-based property price and income management startup PriceLabs has raised $30 million from US investor Summit Partners.

Summit Partners’ minority investment is PriceLabs’ first round of institutional funding. As a result, Summit Partners CEO Colin Mistele will join PriceLabs’ board of directors.

Although the startup is profitable, PriceLabs intends to use the funds for product expansion in the revenue management solutions category and to support the growth of the global team.

Founded in 2014 by Richie Khandelwal, Anurag Verma and Syed Sana Hassan, the startup was born when Khandelwal faced challenges in managing personal rental properties and experienced inefficient price adjustments due to changing demand.

It claims to have tripled in FY22 and has over 15,000 customers. It competes with LeadSquared’s PMS CRM and eZee Absolute, among others.

To bridge this gap between existing revenue management tools and specifically target the hospitality segment, PriceLabs has created artificial intelligence and analytics tools to help owners and managers of short-term rental properties.

The startup offers a pricing solution that analyzes historical and hyperlocal data to detect changes in demand and recommend optimal daily prices tailored to the unique characteristics of each property.

The API tool monitors and studies local market conditions and adjusts prices to meet ownership and traffic needs. Prices are automatically updated through direct integration with property management software solutions (PMS), helping owners to efficiently manage their operations and maximize the profitability of their listings. It integrates with existing hospitality tools and the product democratizes powerful tools that historically were only available to large hospitality companies.

PriceLabs claims to have over 150,000 listings in over 100 countries and is growing because the product resonates with vacation rental businesses of all sizes; from individual owners to large property managers. It offers over 70 integrations with PMS and channel managers such as Airbnb, Vrbo, Houfy, Fantastic Stay, MyRent.com, and Zeeva, among others.

Richie Khandelwal, co-founder of PriceLabs, said, “Pricing can be the biggest lever for growth in running a business, especially in the hospitality industry, where most businesses still use archaic methods and static pricing that can leave between 10% and 40% income on the table. We specifically designed PriceLabs from the ground up to meet the needs of short-term rental operators, providing an easy to use and highly configurable solution.

Colin Mistele, Managing Director (MD) at Summit Partnerssaid, “Consumer preference continued to shift in favor of alternative accommodations across all demographics, resulting in rapid growth in the short-term rental industry and over 8 million unique listings on Airbnb. and Vrbo alone.

Mistele will join PriceLabs’ board of directors as part of the deal. “We believe PriceLabs is uniquely positioned to serve this growing market with an intuitive, easily customizable and comprehensive solution designed to deliver return on investment (ROI) to owners and managers,” added Mistele.