Summit Partners Announces $30 Million Investment by PriceLabs


Summit Partners Announces $30 Million Investment by PriceLabs

August 5, 2022

Funding to support team expansion and product development to meet growing demand for dynamic pricing solutions that are easy to use for short-term rental companies.

PriceLabs recently announced a $30 million minority growth investment from Summit Partners, a global alternative investment firm that is currently managing more than $37 billion in capital dedicated to growth equity, fixed income, and public equity opportunities–supporting PriceLabs continued commitment to building leading revenue management solutions and fuel global team growth.
PriceLabs is a leader in dynamic pricing and revenue management solutions in the short-term rental sector. It was established in 2014 to provide sophisticated AI and analytical tools for owners and managers of vacation homes. Richie Khandelwal, co-founder, was frustrated by the inability to adjust prices based upon changes in demand while managing his own rental property.
The group, which included Sana Hassan and Anurag Verma, came up with a solution to the similar problems faced by thousands of small-business owners in the short-term rental sector.

Colin Mistele, Summit Partners’ Managing Director, and a new member of PriceLabs’ Board of Directors, stated the following about their investment: “Consumer preference continues to shift in favor of alternate accommodations across all demographics which has led to rapid expansion in the short-term rentals industry and over 8,000,000 unique listings on Airbnb. PriceLabs is ideally positioned to service this growing market with an intuitive and easily customizable solution that delivers a quick ROI to both owners and managers.
Summit Partners believes PriceLabs’ experienced team has a significant chance to capitalize on a large untapped market as they continue to create and launch innovative products, according to Mistele.
PriceLabs now powers over 150,000 listings across more than 100 countries. Since its inception, the company has experienced steady growth. Its offering has resonated well with vacation rental businesses of all sizes from small property owners to large property managers. After having grown almost 3x in 2021, PriceLabs was awarded the SaaSBoomi 2021 Bootstrapped Startup Award.
Khandelwal stated that pricing can be the single most important growth lever for any business, especially in the hospitality sector, where many businesses still use outdated methods and static pricing that can leave anywhere between 10-40% of revenue on the table. PriceLabs was built from the ground up to meet the needs of short-term rental agents. It is an easy-to use and highly configurable solution that allows operators combine our AI and algorithms with their unique knowledge of the local property and market.
PriceLabs’ dynamic pricing solution automates historical and future-looking hyper-local data analysis to detect changes in demand and suggest optimal daily pricing that is tailored to each property’s unique characteristics. The company’s comprehensive software gives users the data and tools they need to monitor and analyze local market conditions, adjust prices to meet the needs of the property, and to adjust prices accordingly. Direct integrations with over 70 property management solutions allow prices to automatically update, allowing property owners to efficiently manage their listings and maximize their profitability.
Sana Hassan (co-founder of PriceLabs) said, “Our product democratizes power tools that, historically have been only available to large hospitality companies.” We have a solution that can be used by anyone, from a single host renting a Paris apartment to a vacation rental manager managing multiple thousand units in Florida. It is affordable, easy to use, and seamlessly integrates with existing software.
“We believe that every business in the lodging industry should have access data-driven pricing and associated capabilities. Anurag Verma is co-founder of PriceLabs. “We’ve been at forefront of innovation – from building a worldwide pricing solution to building an industry-first recommendation engine for minimum stays,” he said. Summit provides the support and growth-oriented resources necessary to help us continue our mission to deliver innovation to the short-term rental industry and accelerate global hiring.

Related ItemsAnurag VermabusinesscapitalColin MisteleConsumer preferencedynamic pricinggrowth equityindustry newsinvestmentinvestment firminvestmentspricelabsrevenue management solutionsRichie KhandelwalroiSana Hassanshort-term rental industryshort-term rentalssummit partnerstechnologyvacation homesvacation rentalvacation rental technology