By Riley Kaminer
During the pandemic, e-commerce sales rose to $870 billion: 14.2% from 2020 and 50.5% from 2019. Amazon continues to dominate the space, accounting for nearly 40% of e-commerce sales.
Meanwhile, Miami is somewhat of a hotbed of e-commerce innovation, from Seller Funding to Boopos to Okendo to OpenStore – to name a few.
Profasee is far from simply another name to add to the list. The startup, founded late last year, has developed an AI-powered platform to help Amazon sellers set prices more efficiently.
In an exclusive interview with Refresh Miami, Prophecy CEO and founder Chad Rubin announced that he was pulling the company out of stealth mode, bringing in $2.3M in seed funding. The round was led by Silicon Valley investor defy.vc. Rubin said Prophecy’s 11-person team plans to use the funding to supercharge its product development roadmap and make some strategic hires, including data scientists and go-to-market experts. [pictured above].
Prior to founding Prophecy, Rubin successfully exited e-commerce operations platform Skubana and e-commerce marketing company Seller’s Choice. He also runs his own e-commerce business.
Needless to say, Rubin is bullish on e-commerce. “We’re not just in the early innings of e-commerce,” Rubin said Refresh Miami. “We are in the early innings of applied data science and machine learning.”
As of now, the platform is in closed beta. However, they already have a handful of brands successfully dominating the platform, including Marketplace Wallet, Pavoy Jewelry, and Liliana Naturals Skin Care. Rubin indicated that Prophecy hopes to open the platform soon to its ever-long waiting list.
After a quick onboarding process that links their Amazon storefronts with Prophecy’s system, users tell Prophecy their product price, how much they typically sell the product for, their maximum price, and their minimum price. Profasee handles the rest, dynamically pricing the product in real-time based on various factors such as demand, Amazon rankings, time of day and day of the week.
So far, Rubin shares that beta users have seen a 10-12% increase in profits. Prophecy charges SaaS fees based on the seller’s revenue.
“Chad is inventing the next wave of e-commerce,” asserts Neil Sequeira, founder and managing director of defy.vc. “Profasee is taking e-commerce from an in-store web-based version to a new, personalized shopping experience.” Sequeira invested in Rubin’s latest venture and jumped at the chance to invest in another of his companies.
Both Rubin and Sequeira expressed enthusiasm for the Miami Tech scene. “I’m super bullish on Florida,” said the Hollywood-born Rubin. “The community is thriving, and there’s a thirst to connect,” he continued, noting that fellow founders are especially interested in meeting each other around town.
For his part, Sequeira called Miami “one of the most interesting markets for venture capital right now.” He is a lead investor in Boca Raton-based HonorLock and emphasizes the network effects of having multiple portfolio companies in one region.
Looking forward, Rubin is particularly excited by the prospect of helping e-commerce companies and aggregators price accurately, autonomously and at scale.
“We are a force multiplier, enabling these companies to maximize profitability and EBITDA,” Rubin said. “The one lever that no one knows how to pull is price, and we’re in the perfect place and time to support brands.”
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