Interested in investing in Estonia and tapping into the most productive ecosystem? Use our 1:1 e-Consulting service to get started.
Estonia is rapidly becoming a major hub for artificial intelligence innovation in Europe. The latest success story is Pactum, which specialises in AI-powered negotiation automation.
In 2023, the startup won the DeepTech of the Year title at the Startup Awards. This week, it secured $54 million in Series C funding led by Insight Partners, bringing its total funding to over $100M.
Pactum builds AI assistants that handle the tedious work of negotiating contracts with suppliers. When large companies need to buy everything from office supplies to industrial equipment, they typically have thousands of contracts to manage. Traditionally, human employees would need to review, negotiate, and optimise each deal individually—a time-consuming and expensive process.
Pactum’s AI agents work around the clock to automatically find better deals, negotiate terms, and even close contracts without human intervention. Their fastest deal was completed in just 87 seconds, while their largest was worth $140.5 million.
The company had a standout year with some remarkable statistics for 2024:
- 489% increase in the dollar value of purchases handled by their AI
- 2.5x growth in annual recurring revenue
- Added over 25 new Fortune 2000 customers, including major names like Honeywell, Novartis, and Tetra Pak
Pactum now serves over 50 large enterprises, including household names like Walmart and various industrial companies.
“This funding enables us to accelerate the transformation of procurement by empowering professionals to work alongside AI Agents,” said Kaspar Korjus, Pactum’s CEO. The goal isn’t to replace human workers, but to free them up for more strategic tasks while AI handles routine negotiations.
With this fresh funding, Pactum plans to expand their market reach and develop new AI capabilities. Josh Zelman from Insight Partners, who will join Pactum’s board, noted the company’s ability to “automate end-to-end procurement processes” as a key differentiator in the market.
Estonia, meanwhile, is capitalising on the rise of AI in even more ways—the country has recently secured the world’s first nationwide partnership with AI providers to bring novel tools to classrooms.
