Configuration, Pricing, and Quotation software, also known as CPQ software, is designed to help sellers quote complex, configurable products, such as heavy trucks with different chassis and engine types. Demand is high – according to Gartner, the CPQ software market grew by 15.5% in 2019 to around $1.42 billion. But it can be difficult to navigate because not all providers focus on the same aspects of configuration. For example, some CPQ software emphasizes price optimization at the expense of product customization.
This prompted Eyal Elbahary, Eyal Orgil and Alon Lubin to found DealHub, a CPQ provider focused on creating “accurate” and “predictable” sales pipelines. Launched in 2014, DealHub, which has 160 employees, has expanded over the years to include contract lifecycle as well as subscription management tools, competing with Conga, Tacton and Vendavo.
“Legacy CPQ solutions often require long implementation periods and code-heavy customization, offering little flexibility,” CEO Elbahary told TechCrunch in an email interview. “The hybrid engine of the DealHub platform offers a unique combination: the depth and complexity of a custom-coded solution and the flexibility of a no-code, business-driven configuration environment.”
Prior to launching DealHub, Elbahary was a portfolio marketing manager at Check Point and led product launches at Mercury Interactive, an IT management startup acquired by HP in 2006. Orgil held various marketing positions at companies such as HP and Infosys subsidiary Panaya. As for Lubin, he spent time at Veritas Software and Taboola in addition to Panaya.
Elbahary describes DealHub as a “digital workspace” for buyers and sellers to engage on different components of a deal, with a “holistic view” of a sales team’s activities, actions and ideas. To that end, DealHub offers “sales playbooks” aimed at helping sales teams understand the process of setting up a quote, creating sales collateral, and negotiating contracts. The platform can also dynamically generate relevant contractual and legal terms, facilitating tasks such as collecting electronic signatures and redlining, i.e. modifying a contract when two or more parties are negotiating.
“The pandemic has forced sales teams to rapidly evolve from traditional sales processes to remote sales. With travel slowing down and face-to-face meetings made impossible, sales teams have been forced to embrace digital tools. This accelerated digital transformation has augmented an already existing demand for sales technology,” Elbahary said.
CPQ systems cannot solve all problems. If the data they contain is not up-to-date or accurate, the proposals they generate may include inflated prices or inaccurate delivery times. There’s always a risk of major human error, like a salesperson forgetting to include shipping or delivery charges or omitting a component that another team will need.
But Elbahary says DealHub’s tools are more sophisticated than those of other providers in the space, including incumbents like Oracle, Salesforce and SAP. Mom is the word on the earnings numbers, but investors are apparently confident enough to put money behind the company. DealHub today closed a $60 million funding round led by Alpha Wave Global, bringing the startup’s total raised to $90 million.
“While headlines report devaluations and layoffs, DealHub is growing and recruiting…We are experiencing a fourth straight year of 250% year-over-year growth,” Elbahary said. “The CPQ market is full of untapped potential, as is our one-of-a-kind offering. Our investors know this and have shown their confidence in us through this financing.