TechM, Competera to tap retailers with AI-based price optimisation solutions

IT services and consulting firm Tech Mahindra on Friday announced a partnership with US-based Competera, a pricing platform for retailers to deliver artificial intelligence (AI)-based price optimisation solutions to retailers worldwide.

The partnership combines Tech Mahindra’s business engineering services with Competera’s AI pricing platform and will provide retail customers with advanced tools for setting and maintaining optimal pricing, ultimately aiming to improve gross margin and revenue.

“Retailers are seeking every opportunity to optimize pricing as a pivotal tool to thrive in a shifting marketplace. The partnership leverages Tech Mahindra's technology prowess and Competera's AI-driven pricing solutions to offer a high-performing real-time pricing product,” Lakshmanan Chidambaram, President – Americas Strategic Verticals, Tech Mahindra, said in a statement.

Competera’s pricing platform uses deep learning algorithms that continuously calculate and re-quantify billions of possible price combinations based on 20+ internal and external factors, such as competitor behaviour, elasticity, seasonality, and promotional impact. This will help retailers generate optimal price recommendations that uplift gross margin and revenue by an average of 6% and 8%, respectively.

The platform offers cutting-edge functionality, such as real-time competitive insights, automated workflows, and AI-driven recommendation engines, managed by a user-friendly dashboard to ensure pricing experts are always in the loop to make informed decisions. As a part of this partnership, Tech Mahindra will provide hassle-free integration, implementation, and platform support, enabling customers to adapt to evolving retail challenges, the company said.

Alex Galkin, Founder and CEO, Competera, said that with Tech Mahindra's support, the Competera Pricing Platform will enable retailers to unlock new levels of agility, efficiency, and customer loyalty. We’re looking forward to a dynamic future together, where our combined strengths propel retailers to take the lead in a rapidly evolving, highly competitive industry.”

The partnership underscores Tech Mahindra's emphasis on leveraging next-generation technologies and Competera's commitment to providing AI-driven pricing solutions that adapt to evolving retail challenges, signalling a significant leap forward in retail industry innovation.

Last month, Tech Mahindra reported a net profit of ₹510 crore for the third quarter ended December 31. This marks a decline of 60.6% year-on-year (YoY) from ₹1,296.6 crore in the corresponding quarter of the previous fiscal year.

The company's YoY net profit saw a decline of 41%, reaching ₹763 crore. Sequentially, the profit increased by a mere 3% from ₹494 crore in the previous September quarter. Consolidated revenue for Q3FY24 declined 5% YoY at ₹13,101 crore.

The decline is attributed to a further slowdown in demand in key verticals, including hi-tech, telecom, and financial services. The company's EBIT margin or operating margin was at 5.4%, which is an improvement compared to the previous quarter's 4.7%.