Ottawa’s 360pi pulls in $4.1M

Firm’s software can track retail prices

An Ottawa company that makes software to monitor retail pricing has received a $4.1-million U.S. investment.

360pi, which employs 40 people locally, announced the new funding Monday and said the cash will be used to expand operations in Ottawa and create new products and services.

The company, which analyzes the sale prices of goods at various retailers, then shares that market intelligence with competitors in the space, counts American giant ACE Hardware, Best Buy Canada and Overstock. com among its customers. It has recently found itself fighting for new business as its main competitor, Austin, Texas, firm BlackLocus, was purchased by Home Depot for an undisclosed amount in December.

360pi’s new investment round was led by one of the investors from BlackLocus, Austin, Texas investment firm Silverton Partners.

“Being very familiar with the space, we feel strongly that market conditions are right for significant growth in the price intelligence market,” said Morgan Flager, a general partner at Silverton.

“When BlackLocus was acquired in December 2012, the executives unanimously pointed to 360pi as the competitor they most respected.”

The market for pricing information is expanding rapidly as consumers increasingly look to online shops to buy goods. Large retailers aren’t just competing with their traditional competitors any more, they are now battling for customers with online niche shops. Companies such as 360pi track pricing trends and help retailers to find an appropriate price point for their offerings.

The Ottawa firm has recently expanded into new offices near the corner of Prince of Wales Drive and Baseline Road. The company said the new space, about 6,000 square feet, is more than triple the size of its former space. The company, which has added 18 new employees in the past year, said it planned to add several more in the months ahead.

The company, formerly known as Garazo, was spun out of an Ottawa incubator in 2008. It was focused on providing pricing comparisons to consumers. Chief executive Alexander Rink said 360pi’s growth follows a change in focus in 2010 to providing pricing information to businesses. That caught the attention of major retailers across North America.

“As more consumers get mobile devices, retailers need more information in order to better prepare themselves for the market,” he said. “We shifted our focus from the consumer to business to business. We have achieved some pretty good success. We are looking to recruit the best and brightest.”