Pactum’s client portfolio includes Walmart and various other Fortune 500 companies. “They all experience the same challenge – 80% of their suppliers are never reached out to. Hence, money is left on the table as they just don’t have time to do that,” Kaspar Korjus, co-founder and CPO of Pactum said at his pitch at Unicorn59.
According to KPMG, 17%–40% of the value of vendor deals is lost due to inefficiencies in the contract negotiation process. For companies balancing hundreds of contracts at any given time, this negotiation process can be time consuming and laborious. Pactum’s platform generates win-win deals for both the enterprise and vendor by responding to the priorities of both parties and integrating relevant data and objectives ahead of time, allowing the platform to proactively renegotiate contracts in as little as 15 minutes, spotting changes in variables such as input prices or delivery terms. Pactum is able to unlock cash flow and untapped value. In a single departmental use of a Fortune 500 company, Pactum was able to unlock working capital at a rate of $1.5M per month.
Korjus presented Pactum’s contract negotiation AI platform and explained how Pactum helps companies to go swiftly through the negotiation process within 10-20 minutes, increase customers base, quantity of deals and finally, both revenue and profitability.
The company aims to rapidly expand its team to partner with a number of major organisations, further hone its automated technologies and expand the application of its platform into a range of new industries. As reaching supplier agreements with a computer system becomes more normalised, Pactum’s technology can be easily deployed in other use cases such as employment contracts, licensing, or rental agreements.
Founded in 2019, Pactum first raised almost 1 million euros ($1.2M) from investors, such as Jaan Tallinn, Sten Tamkivi, Ott Kaukver and Taavet Hinrikus; a year later received a 2.5 million euros ($3M) round, led by DocuSign and Project A; and last month, a 9 million euros ($11M) round led by Atomico. According to Korjus, Pactum is not raising funds at the moment, but as they have progressed better than expected, they have always engaged in fundraising sooner than expected.
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