Vayu Raises $7 Million to Facilitate Hyper-Dynamic Pricing for B2B Tech Companies
Vayu raised $7 million in a seed funding round to accelerate the development of its billing and revenue management platform for B2B tech companies.
The no-code platform makes it easier for B2B companies to transition from exclusively usage-based pricing to hyper-dynamic pricing that takes into account unlimited variables, the company said in a Wednesday (Feb. 26) press release.
“In a reality where pricing models have countless variations and each contract has its unique fingerprint, finance teams need full control of their revenue processes,” Vayu CEO and Co-founder Erez Agmon said in the release. “At Vayu, we enable them to adopt any pricing model, launch new offerings and seamlessly iterate on pricing — without relying on engineering resources.”
Vayu is developing its platform at a time when B2B companies are embracing complex pricing structures that can be difficult for traditional billing systems to handle, according to the release.
The platform is designed to help these companies deploy usage-based, subscription tiers and outcome-based pricing, the release said.
Vayu’s seed funding round was co-led by Flint Capital and The Garage.
“By enabling businesses to seamlessly manage flexible contracts and automate the cumbersome billing processes, Vayu provides finance teams with the tools they need to scale efficiently without technical constraints,” Flint Capital Principal David Feldman said in the release.
In its simplest form, dynamic pricing is about a vendor setting the price of its product based on what a particular customer is willing to pay, PYMNTS reported in 2018, adding that in reality the process is more nuanced and takes into account additional factors like relationship history that are less easily measured.
When billing platform Octane said in January 2024 that it was joining payments processor Stripe, the company said in this strategic partnership it was working with a firm that shares its passion for supporting “a diverse range of pricing structures and allows companies to easily iterate on their pricing.”
“We started Octane to democratize consumption-based pricing by building the billing infrastructure needed to support it,” the company said in its announcement. “Today, we continue to see tremendous growth of consumption-based pricing use cases.”
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