Why we invested in catalan.ai
Catalan.ai caught our attention for two primary reasons.
It’s exceptional founding team, and the significant market opportunity it presents.
After meeting in the “AI for Impact” MIT Media Lab class, co-founders Ishaan Grover (MIT PhD, co-author of 9 academic papers, 469 citations in AI/ML) and Andres Garza (MIT MBA, background in VC and strategic management) set out to create the most dynamic pricing algorithm in the market.
Ishaan is the brains behind the technology that catalan.ai is built on. They have since recruited top machine learning engineers to tune their initial solution to cater to companies across all markets (in multiple countries, in order to help increase total profit margins). Their close-knit, multidisciplinary, and local, MIT team brings together a unique blend of expertise and passion which is critical for any startup’s success.
So, why “catalan.ai”?
Catalan is a positional opening used in chess. At catalan.ai, the belief is that companies should be playing chess, not checkers with their pricing… and always thinking 3–4 steps ahead of market dynamics and competitors.
Catalan.ai is an end-to-end pricing optimization solution, leveraging AI/ML technology to offer unparalleled value to customers. The company’s models improve with more data, enhancing the value for stores and subsequently improving the user experience. This creates a virtuous cycle of more stores leading to better models… which in turn leads to better value and user experience, and that presents a significant growth opportunity.
The company’s software is designed to work for any type of company, industry, size, or location. Catalan.ai has received organic interest from large enterprise customers, thanks to the founder’s personal relationships and MIT connections. Their robust and scalable AI/ML platform allows them to further expand their market reach. As an example, for one enterprise customer which sells for billions, catalan’s models have optimized their profit by 29% and revenue by 16% in six months.
Another enterprise customer which sells for millions has already surpassed 15% revenue lift. These real-world profit and revenue lifts represent millions of dollars that were previously left on the table. And all this with just their subtle daily price changes (most of the time just a few cents up or down).
Catalan’s product approach, aiming to solve a universal pain point irrespective of size, industry, or geography, is a winning strategy. In time, it strategically positions them to capture a sizeable share of the world’s transactions.
Today, a significant number of the world’s largest organizations are still using “old-school” revenue management strategies. Back-of-the-envelope calculations are the norm because of the mindset which believes that if “it’s worked before, why change it”?
However, in this era of AI/ML where companies like ChatGPT can disrupt the largest industries and companies in a heartbeat, it is the companies which will jump on board the optimization bandwagon which will benefit from significant advantages.
Despite being in a competitive landscape of “pricing apps”, there’s a distinct lack of technology differentiation in the solutions being offered. Most do not leverage state-of-the-art AI/ML. This is where catalan.ai comes into play, providing a unique approach that sets it apart from the competition.
The sheer size and analogue nature of “legacy” industries, coupled with the current gap in differentiated pricing optimization solutions provides a ripe environment for a disruptive player like catalan.ai. By offering a unique, value-driven solution, Catalan is well-positioned to capture a significant portion of these markets, transforming the fabric of commerce in the process.
In conclusion, the combination of a stellar team, a product built on cutting-edge technology, and a vast market opportunity made catalan.ai an attractive investment. The company’s potential to revolutionize pricing optimization is immense, and we are excited to be part of their journey.
