Middlesbrough start-up Bubo.AI has raised £65,000 in equity investment through private investors from the Leeds-based investment non-profit, NorthInvest. This funding is in addition to £650,000 originally invested by the Northern Powerhouse Fund.
Bubo.AI’s platform which seeks to revolutionise the way companies price their products, uses artificial intelligence (AI) to analyse customers’ behaviour to understand what they are willing to pay, then recommends the optimum price to sales staff. The company also supports sales staff to avoid them giving unnecessary discounts.
Designed for wholesalers and distributors such as builders’ merchants and food services, the solution allows them to base their prices on customer value rather than cost or other methods, yielding on average a 30% uplift in net profit.
To support industry’s ability to bounce back from COVID-19 and regain baseline profits, the team has launched a free AI app, Revenue Recovery Roadmap, in the Microsoft AppSource & Azure Marketplace. The app builds a sophisticated customer segmentation model leveraging AI and the Microsoft Cloud to analyze multiple data sources to gain new insights and identify key recovery signals, such as customer trajectory.
Founded by CEO Alan Timothy in 2019, Bubo.AI is active in the UK and European markets and its optimisation technology can be adapted to each business and combined with training to upskill teams within user companies.
Mark Roberts, a NorthInvest Angel Investor who led the round, said: ‘Bubo.AI’s platform will enable companies to maximise their profits far beyond the COVID-19 crisis. The start-up solves a key pressure point for wholesalers and suppliers by providing intelligent customer behaviour-learned recommendations and thereby removing any guesswork from pricing strategy, which until now has been resource-intensive. I’m delighted to support Bubo.AI in the next stage of its growth and assist the company to scale across markets.”
Andy Preston, Mayor of Middlesborough, concluded: “Bubo.AI is a perfect example of the innovative and high-calibre businesses born out of the North East with the potential to expand across global markets. The Revenue Recovery Roadmap will be gratefully received by local businesses whose profits have been affected by COVID19 and we look forward to witnessing Bubo.AI’s progress in the years to come.”
Alan Timothy, CEO of Bubo.AI said: “We’re very grateful to the support of our most recent angel investors who have contributed to this round. As a start-up founded in the North of England and benefitted from the Northern investment ecosystem, we are excited to launch this COVID19 Revenue Recovery Roadmap for free to give back to local businesses.”