package.ai Revenue, Valuation & Funding (2024)

Package.ai reported monthly recurring revenue of approximately $120,000 as of late 2021, equivalent to roughly $1,440,000 on an annualized run-rate basis. Fass confirmed to Latka that MRR one year prior, in 2020, was approximately $50,000, implying year-over-year growth of approximately 100 percent, or roughly 2x. Fass described the growth rate as between two and three times year over year.

Package.ai reported more than 24 customers in North America as of late 2021, with Fass confirming the count was more than 24 but fewer than 100, describing it as dozens. Named customers include Spencer's TV and Appliance, an active customer as of 2021, and Stella Delivery, based in New Jersey, which was among the first customers signed in 2017 via a cold email campaign. An unnamed furniture retailer in Australia, described as operating across Sydney, Melbourne, and other locations, was also cited as an early and ongoing customer.

Pricing is structured across two tiers. The first is a subscription fee per vehicle or driver per month, which serves as a proxy for order volume. The second is a per-location fee for review generation tied to physical store locations. The average annual contract value was approximately $60,000 as of 2020 and 2021, with a stated standard range of $50,000 to $100,000 per year. Fass noted the company was trending upward in account values over time.

Package.ai generates revenue through a subscription model with two pricing components: a per-vehicle per-month fee covering delivery management and communications, and a per-location fee for the review generation service tied to physical retail locations. The company serves home furnishings and appliance retailers in North America exclusively.

Fass stated the company had zero churn to date as of the interview, meaning no customers had left the platform since its 2017 founding. Approximately 1,000 drivers were active on the platform as of late 2021. Fass estimated the company had generated roughly 10,000 total reviews across all customers over the lifetime of the platform, though he noted he did not know the exact figure. Individual drivers handle between 10 and 25 orders per day depending on how the retailer operates.

Profitability was not discussed in the interview. Burn rate and runway were not disclosed. The company described itself as lean, with a total team of 10 people and engineering concentrated in Israel.

Package.ai had a total team of 10 people as of late 2021. Seven team members are based in Israel, described by Fass as mostly engineers and engineering support, making the team heavily weighted toward research and development. Three team members are based in the United States. Ralph Schulberg was identified as head of sales and GM of North America.