Companies spend millions of dollars a month launching thousands of promotions, but they don’t always have insight into which ones worked better than others. And when the promotions are analyzed, it turns out that most of them did not help the company to turn a profit at all.
Enter Kuona, a Mexican SaaS company that uses machine learning to review all these promotions to show packaged goods companies and retailers which ones are doing well, and automatically optimize product prices and inventory for promotions.
Seeing the challenges of pricing and promotions, Chema Sanroman and Agustín Magaña, who have a background in data science, AI, and CPG revenue and pricing, founded Kuona in 2017.
Here’s how it works: Kuona has developed data-driven tools to predict demand and track customer behavior. The tools integrate with real-time company data and use neural networks for simulation to increase ROI on promotions while maintaining or increasing sales.
“Our tool helps them understand what works and what doesn’t,” Sanroman’s CEO told TechCrunch. “It also gives them a picture of what worked in the past, present, and then allows them to plan for the future.”
Currently, Kuona operates in the United States, Mexico, Peru and Ecuador, and has just opened an office in Brazil. It offers two products, including price and promotion optimization and Perfect Order, which helps businesses reduce returns and out-of-stock per point of sale.
The company has doubled its revenue and number of customers in each of the last two years and is already profitable. Its list of 15 to 20 clients counts global entities such as Coca-Cola and OXXO grocery stores.
Today, it announced a $6 million seed capital round in a Comet-led round involving Seaya Cathay Latam and FEMSA Ventures. The new investment gives Kuona approximately $7.2 million in total funding.
Sanroman intends to use the new funding to further develop its team and geographic presence in Latin America and the United States, as well as to establish a team in Europe, where it already has some connections.