Estonia is making yet another mark on the map of recent AI successes. Estonian startup Pactum AI, which focuses on autonomous negotiations, has raised $20 million in Series B investment. Used by logistic giants and Fortune-500 members, their product puts AI in the hands of procurements teams, saving money and time.
The investment was led by Tallinn-based firm Karma Ventures, which specializes in supporting Europe’s most promising deep-tech software startups, and was joined by Maersk, the leading integrated logistics company, which has previously invested and itself uses Pactum to conduct autonomous negotiations with suppliers. Other existing investors in this round include 3VC, Atomico, Project A, and SuperAngel, as well as new investor Portfolion. This brings Pactum’s total investment to date to $55 million.
Since 2019, Pactum AI builds an autonomous negotiation platform designed to streamline and automate complex business negotiations, with a focus on procurement and vendor management. It’s a deeply customisable, action-focused enterprise solution: Pactum collaborates with a company to understand its negotiation goals, priorities, and constraints.
This involves defining desired outcomes, acceptable ranges, and any non-negotiable points. The system is then configured with relevant data, such as historical contract terms, supplier information, and market benchmarks. All in all, the goal is to enable large enterprises to simultaneously conduct thousands of negotiations with suppliers and achieve more optimal terms for both sides.
Over the past five years, Pactum AI has conducted thousands of autonomous negotiations on behalf of Fortune 500 companies and developed the world’s largest library of negotiation behavioural learnings as every autonomous negotiation helps the AI learn how to guide future deals towards better outcomes for both sides.
The new funds will enable the company to refine the product and reach more customers. The main focus will be on enhancing the user experience of Pactum AI’s autonomous negotiation tools, making them more intuitive for procurement teams and developing initiatives to upskill procurement professionals, such as through a new Autonomous Negotiations Academy.
To oversee this new phase of growth, Pactum’s previous Chief Product Officer Kaspar Korjus has been appointed CEO, and Pactum’s previous CEO Martin Rand has been appointed the company’s first President. Korjus previously founded Estonia’s flagship e-Residency programme, which has recently crossed a milestone of 100,000 members. The company is also hiring for senior software engineers in Estonia, among other roles in Europe and the US, and also accepts open applications.
“The future will be autonomously negotiated and Pactum has a tremendous opportunity to bring this future closer and unlock the benefits sooner with its world-class expertise, which ranges from AI to UX, and across procurement,” says Kaspar Korjus.
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