This startup has raised $8.5 million to revolutionize e-commerce pricing

Amazon and eBay veteran, Guru Hariharan, is ready to revolutionize the way retailers price and sell products. His company, Boomerang Commerce, announced today $8.5 million in its first round of institutional financing from Trinity Ventures and Madrona Venture Group. Boomerang Commerce’s newest concept, a retail application called Dynamic Price Optimizer, is poised to take on top online retailers by leveraging real-time analytics for companies to drive more business. Companies already using the Dynamic Price Optimizer have seen an increase in online revenue of 5 percent, on average, according to the company.

Boomerang Commerce, one of our six finalists at the latest Disrupt in New York, today announced that it has raised an $8.5 million Series A round. The round was led by Madrona Venture Group and Trinity Ventures. Both investors will also take seats on the company’s board. The company helps large e-commerce retailers set their prices based on comparing their prices with competitors and helping them optimize their prices based on different criteria (revenue, profit and sales volume, for example). Boomerang never took any seed money, so this Series A round actually marks the first time it has taken outside funding. As Boomerang’s CEO Guru Hariharan tells me, the company expects to use this new financing to expand its engineering and go-to-market teams, as well as to build additional retail applications on top of its platform. Right now, Hariharan is doing most of the sales himself, and the company is getting quite a bit of traction through word-of-mouth from existing customers, which now include the likes of Staples in the U.S. and Canada and Sears, which is working on a pilot project with the company.