Source: siliconangle

Pactum AI Inc., a startup that helps companies secure more favorable contractual terms from their suppliers, has closed a $54 million funding round led by Insight Partners.

The Series C investment was announced today. It comes about a year after Pactum’s previous raise, a $20 million round backed by shipping giant Maersk AS. The company has raised more than $100 million in total funding since its 2019 launch.

Standardized terms can lead to unnecessary costs. A supermarket chain’s shopping cart supplier, for example, might provide discounts when order sizes increase. Such discounts can’t be unlocked when the terms of a procurement contract are fixed.

Mountain View, California-based Pactum promises to address the challenge. It provides an artificial intelligence platform that can automatically negotiate more favorite contractual terms with suppliers. It does so using AI agents that interact with supplier representatives via a chatbot interface. To use Pactum, a company must specify what it plans to offer in exchange for discounts. An electronics retailer might be willing to order up to 10,000 more desktop computers if a supplier cuts its prices by 10%. Pactum’s AI agents use that data to customize their output.

“With this investment, we can scale our market reach and grow our portfolio of AI agents with new innovations that benefit organizations looking to transform procurement operations,” said Chief Executive Officer Kaspar Korjus.