Companies spend millions of dollars launching thousands of promotions every month, but they not always have insight which ones work better than others. And when analyzing promotions, it was discovered that most of them did not help the company’s bottom line.
enter Kuonaa Mexico-based SaaS company that is using machine learning to review all those promotions in order to let retail companies and consumer packaged goods companies know which ones are active well and to automatically optimize product prices and inventory related to promotions.
Seeing the challenges surrounding pricing and promotions, Chema Sanroman and Agustín Magaña, who have background knowledge in data science, artificial intelligence as well as 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. These tools integrate with company data in real time and leverage neural networks for simulations to increase return on investment for promotions while maintaining or increasing sales.
“Our tool helps them understand what is working and what is not,” CEO Sanroman told TechCrunch. “It also gives them a picture of what has 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 recently opened an office in Brazil. It offers two products, including price and promotion optimization, and Perfect Order, which helps companies reduce returns and out of stock per point of sale.
The company has doubled its revenue and customers in each of the past two years and is already profitable. It is based on a list of 15 to 20 customers who are global organizations such as Coca-Cola and OXXO convenience stores.
Today, it announced $6 million in seed capital in a round led by Cometa and comprised of Seaya Cathay Latam and FEMSA Ventures. The new investment brings Kuona about $7.2 million in total funding.
Sanroman intends to deploy the new funding to further expand its team and geographical presence in Latin America and the United States and establish a group in Europe, where it already has several relationships.