Venture Capital News: Boomerang Commerce Lands $12M
MOUNTAIN VIEW, CA, Boomerang Commerce, creators of the first guided-analytics suite for modern retailers, today announces a Series B funding round of $12 million led by Shasta Ventures
The round included significant participation from existing backers Madrona Venture Group and Trinity Ventures. The new financing allows Boomerang to expand its product offering to deliver a broad technology suite addressing the most critical profit drivers of modern retailing, including price optimization and price intelligence with actionable recommendations, assortment optimization in near real time and more. From apparel, office supplies, home improvement and consumer electronics to auto parts and general merchandise, large retailers are choosing Boomerang to help them compete on a level playing field against segment leader Amazon. In 2015, the company achieved a 400-percent increase in its customer base, which includes Groupon, Office Depot, Staples and US Auto Parts.
Boomerang Commerce fills an urgent need for retailers buffeted by total price transparency and comparability, shopper demands for wider product assortment and brutal price competition characterized by multiple intra-day price shifts by Amazon and others. With a single technology stack addressing multiple hard problems, Boomerang uses external market data to deliver the unique combination of price intelligence and advanced analytics to rate the 'market hotness' of hundreds of millions of products. By providing near-real-time recommendations and guidance, Boomerang also enables retailers to scale out complex price optimization and assortment expansion projects in weeks instead of months or years. This agility and data-driven decision-making combining so many functions from a single technology service provider finally consolidates and simplifies the complete arsenal modern day retailers need to compete.
'Boomerang Commerce is a technology partner to modern retailers. We help them hone in on core competencies and win the markets they see as critical to their success, while also aiding them in decisions on where to scale up and scale down,' explains Boomerang's CEO Guru Hariharan. 'Our goal is to give our customers an unfair advantage that leads them to victory in the modern retail world.'
Counting nine of Internet Retailer's Top 50 companies among its growing rank of customers, Boomerang has become the market leader in big data technology for retail pricing and assortment optimization and guidance in near real time. The Boomerang Commerce Retail Solutions Suite now guides more than 15 million pricing decisions every day, an amount that has grown 500 percent since May 2015. The Suite uses models that analyze over 25 billion points of performance and competitor data and external market data, thereby combining modern data science with advanced analytics that put any retailer on even footing with sector technology leaders. In effect, Boomerang offers retailers a turnkey SaaS technology stack comparable to the ones that cost Amazon and Walmart billions of dollars to build and maintain.
'Amazon has set the bar very high. To survive, every retailer needs to find new strategies to compete against Amazon. Old techniques are not going to work. Boomerang Commerce has built breakthrough technology that gives its customers amazing ROI,' says Sean Flynn, a general partner with Shasta Ventures, which led the Series B round. 'Boomerang's vision for data-driven retailing and its fast execution made our decision to invest in Hariharan and his team very easy.'
Boomerang's rapid growth is powered by retailers' growing need to make complex business decisions every day by the hour and minute. The uniquely integrated and scalable capabilities of the Boomerang Commerce Retail Solutions Suite include near-real-time recommendations on how to price competitively yet profitably, what products to stock or discontinue and how to bundle products. For example, by leveraging Boomerang's technology based on external market drivers, a large, general-merchandise retailer used price optimization to generate double-digit margin growth across six categories sold online and in over 600 stores. Another customer - one of the three largest home improvement chains - used Boomerang to identify key competitors in a specific category, create a pricing strategy based on market pricing and margins and optimize prices with a price-change feedback loop using data collected from its own customer actions.
This unique combination of technology capabilities is delivering real financial returns to customers in a matter of weeks and has made Boomerang Commerce a trusted partner for retailers. 'US Auto Parts has become a dominant destination in do-it-yourself (DIY) online auto parts with 10 million visitors monthly, the leader in DIY collision parts and one of the strongest in private-labeling, with over 45,000 auto aftermarket repair products,' says Shane Evangelist, CEO of US Auto Parts. 'A cornerstone of our strategic plan is to increase customer lifetime value, which requires increased repeat purchases, conversion, basket size and profitability per transaction. The Boomerang Commerce Retail Solutions Suite plays a critical role in helping us increase the profitability per transactions as well as overall profitability.'
Boomerang Commerce Hires Vice President of Sales
To support the rapid growth and to expand the Boomerang sales team, the company hired Brendan O'Donohoe as vice president of sales. This Bronze Star-decorated, senior Army officer formerly held sales leadership roles at retail intelligence company Quri. He previously held senior sales leadership positions at Salesforce and Pepsico's Frito Lay division. A graduate of the Harvard Business School, O'Donohoe's directive is to even further accelerate sales and business development as Boomerang Commerce defines the future of retail.
About Boomerang Commerce
Founded in 2012, Boomerang Commerce offers the first guided-analytics suite for modern retailers. Nine of Internet Retailer's Top 50 already rely on Boomerang's Retail Solutions Suite. Built by a team from Amazon, Google and Walmart.com, Boomerang applies machine learning and big data analytics to massive data quantities across digital and brick-and-mortar channels. Boomerang's technology derives superior insights and actionable recommendations to transform business decision makers into retail ninjas. For more detail, please visit www.boomerangcommerce.com.
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