3VC leads investment in digital negotiation pioneer; Maersk Growth joins round after its procurement team successfully deployed Pactum’s technology to negotiate spot trucking rates
Pactum, the business negotiation technology pioneer that enables enterprises to unlock value in deals they typically can’t negotiate on their own, has raised $20 million in additional funding. Pactum’s solution – which uses advanced mathematical models, cognitive science, and best-in-class negotiation techniques – leverages intelligent bots to digitally engage third parties and negotiate mutually-benefiting contracts, leading to better pricing, payment terms, and supply continuity.
The investment was led by 3VC, with participation from new investors NordicNinja VC and Maersk Growth, and existing investors Atomico, Project A, Metaplanet, and Taavet+Sten. Maersk Growth invested after Maersk’s procurement team successfully deployed Pactum’s technology to negotiate spot trucking rates.
With a proven ability to unlock working capital, reduce spend and increase team productivity, Pactum is experiencing its strongest period of growth on record amidst the ongoing market uncertainty. In addition to Maersk, several leading enterprises rely on Pactum’s innovative technology today, including Walmart and Wesco.
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“As we enter a period of slowing growth, it is even more crucial that companies engage their partners and negotiate agreements that bring financial and operational benefits to both parties,” said Martin Rand, co-founder and CEO of Pactum.
“The macro-environment continues to shift at a rapid pace. Enterprises face high inflation, non-stop supply disruptions and complex inventory problems. Furthermore, as we enter a period of slowing growth, it is even more crucial that companies engage their partners and negotiate agreements that bring financial and operational benefits to both parties,” said Martin Rand, co-founder and CEO of Pactum.
Pactum’s solution, which leverages digital bots that learn over time, creates a fast and responsive environment for users to digitally negotiate deals with thousands of suppliers at a time, leading to productivity gains, cost-reductions and stronger terms for all parties. On average, Pactum generates savings of 3%-5% when fully deployed by enterprise clients, creating hundreds of millions of dollars in unrealized savings.
“We have spent 24 months deep diving into digital procurement with Pactum being our first investment. Working with the Pactum team for that period has confirmed that they are a top performing team with superior knowledge about procurement and negotiations. Pactum’s solution increases customer experience and helps digitize, democratize, and decarbonize the supply chain,” said Peter Jorgensen, partner at Maersk Growth. “Pactum is an amazing addition to our portfolio and we are pleased to join a very solid investor base.”
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3VC, which evaluates 3,000 startups per year and invests in only three or four, was primarily attracted to Pactum for its novel approach to negotiations.
“We believe Pactum has all the elements needed to be a clear game changer in the business negotiations process,” said Eva Arh, partner at 3VC. “Negotiations are ubiquitous and historically lose-win. With Pactum, agreements are made in a novel way: personalized, fast, with mutual value, and on a massive scale, which leads to faster agreements and a more inclusive process for all parties involved.”
Pactum will leverage the funds to further expand in the U.S. and Europe, and accelerate investment in its capabilities across logistics, intelligent contract optimization and retail item-level merchandising operations.
“Pactum provides a proven, unique and actionable approach for improving financial outcomes,” said Marek Kiisa, managing partner at NordicNinja VC. “Given the current economic landscape, we expect businesses to quickly embrace Pactum’s vision of making digital and bot-based negotiations the new standard in business commerce.”
