Software co Profitect raises $5.5m

The retail inventory loss solutions developer plans to boost its staff by 75%.

"The financing round will enable us to expand our market and pursue product decelopment," Profitect Inc. CEO David Even Haim told "Globes", after the company announced that it had raised $5.5 million in its second financing round. Genesis Partners and Cedar Fund participated in the round. Cedar Fund led the first financing round in the company in 2005.

Profitect has developed fraud detection and loss prevention solutions for retail chains. "Losses discovered during inventory are a major problem. Instead of waiting for inventory results, our software can spot such losses early," says Even Haim. He added that most large retailers include such losses when calculating their net profit, so preventing inventory losses greatly boosts profits.

Profitect's customers include German retailer Metro AG (DAX: MEO), Israel's second largest supermarket chain Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI), Paz Oil Company Ltd. (TASE:PZOL) convenience store chain Yellow, and Delek Group Ltd. (TASE: DLEKG) convenience store chain Menta.

Even Haim says that US and UK retailers have completed pilots of the company's software, and contracts would be signed soon.

Tel Aviv-based Profitect has 20 employees, and plans to hire 15 more over the coming year. "We're hiring sales and R&D staff," says Even Haim.

Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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