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Friday, March 1, 2024

Estonian startup raises €1.25M to automate Cost and Revenue Intelligence for transactional businesses

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Tallinn-based startup Reiterate has raised €1.25M in a round led by Hummingbird Ventures with the participation of many others including the co-founders of Showpad, and former Skype, Pipedrive, Stack Overflow, and Veriff executives. The company’s platform helps users build complex revenue models and visualize complex pricing agreements. The funding will help the startup company expand its team and boost its growth especially across Europe.

Reiterate raises €1.25 million to launch a financial modelling tool for fast-growing businesses

Reiterate, a tech startup that aims to automate Cost and Revenue Intelligence for transactional businesses has raised €1.25 million. The investment round was led by Hummingbird Ventures and included a number of notable private investors, such as the co-founders of Showpad, and former Skype, Pipedrive, Stack Overflow, and Veriff executives.

Reiterate, Hummingbird Ventures, Nikita AnderssonNikita Andersson, Venture Capitalist at Hummingbird, commented: “Reiterate addresses a critical but underserved piece of financial infrastructure, revenue and cost management. Despite revenue leakage being a severe pain point for enterprises, the market still lacks innovative solutions that move beyond databases and spreadsheets.

In approaching this problem, Joonatan and Jaan impressed us with their drive and non-linear thinking. We’re excited to invest in a product that not only results in cost savings, but does so in a way that reduces complexity for users.”

Founded by an engineering-sales duo that previously built top-selling products at Veriff, Reiterate offers a new generation reconciliation tool for finance, payments, and business intelligence teams. The tool provides a no-code environment for generating automated custom pricing calculations.

According to Forrester, companies lose 10-12% of their total contract value due to contract value leakage every year. Put together, this translates into $3 trillion in losses, globally, per year. The majority of contract value leakage occurs due to invoicing errors caused by inability to track pricing terms, manual calculation errors, and poor performance monitoring practices. Billing and cost metering is still largely done through complex spreadsheets or solutions coded by in-house teams, which tend to fail as volumes increase.

The Reiterate tool brings together automated billing, invoice validation, and financial reconciliation in one simple tool that centralises commercial data and eliminates stressful workflows across different teams within a company. The tool helps to visualise complex pricing models and tracks performance to automatically detect charging errors.

In the financial modelling market, which is typically focused on solving sales-side challenges, Reiterate stands out with its reconciliation engine that allows for both buy-and-sell integration capabilities, while also providing anomaly detection in revenue management. The product has witnessed success amongst payment teams for cost optimisation, business intelligence teams to reduce workload, and finance teams to alleviate reporting concerns.

The company’s long-term product vision includes the use of neural networks to analyse agreements, followed by automated analytics to detect payment errors. The new investment will be used to grow its global engineering and product team to further develop the calculation editor, improve client onboarding and grow traction in the UK and across Europe.

Reiterate, Joonatan Samuel“Usage-based pricing is on the rise, as it is better aligned with today’s customer behaviour. At the same time, managing complex pricing models is a challenge for large companies. Our market research has further highlighted the scale of the problem.

Reiterate aims to provide a simple solution to eliminate over- and undercharging and help the people caught in these stressful processes,” said Joonatan Samuel, the co-founder and CEO of Reiterate.

Click here to read more funding news.

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Nurcin Metingil
Nurcin Metingil
A permanent student, a passionate first reader and nowadays doing master’s degree in Publishing Management. Beside these, I am up for games! I have been playing games since I was 6. Now, I am whispering "Business. Business. Numbers. Is this working?"

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