Foodomarket, the digital B2B food marketplace for the hospitality industry, has raised £9.5 million in a Series A funding round.
The round was led by Alven Capital, a leading European venture capital firm that has supported other successful marketplace businesses including Ankorstore, Meero, and OpenClassrooms.
Restaurants spend approximately 30% of their revenue on food supplies, with the war in Ukraine and widespread inflation further impacting narrow profit margins. However, many buyers, especially at small businesses, are stuck with a small number of traditional suppliers, with no transparency over whether the produce they buy is the best value on the market.
Foodomarket describes itself as an open and transparent online marketplace where any seller who meets rigorous standards can list their produce. Buyers can then make decisions based on quality and price in one easy-to-use system. Foodomarket handles and guarantees payments for suppliers.
The new funding will be used to support the company’s official UK launch, including expansion out of London as well as the first elements of expansion in the US. The company also plans to use the funds to roll out its new app and website, and to expand its teams in local markets to provide customers with a tailored experience.
The global foodservice market is worth $2.5 trillion having seen sustained growth in recent years. Foodomarket’s growth tripled in 2022, and the company enjoys a 92% repeat business rate. A 12-month trial in the UK saw 500 restaurants in London sign up.
Co-founders Eric Nivoix and Matthieu Boivent have been working together for over a decade in digital services, building up several B2B marketplaces in different industries. Combined, they have more than 20 years of relevant industry experience.
Buying through Foodomarket’s platform is typically 15% cheaper than via traditional distributors. The platform also gives sellers access to a large pool of potential buyers which lowers the risk of stranded assets and food waste.
Helping to achieve goals
Eric Nivoix, co-founder and CEO of Foodomarket, said: “This is a major moment in Foodomarket’s evolution. When we set out, our aim was to mend a broken, outdated system and generate opportunity for entrepreneurs and small business owners. The funding announced today goes a long way towards helping us achieve those goals.
“We’ve had first-hand experience of launching and running restaurants, so we know the problems these business owners face day to day. Foodomarket was built by restaurant owners, for restaurant owners.
“Our impressive performance in France shows we’re doing something right and launching our offering in the UK was the logical next step. We can’t wait to hit the ground running.”
Rodolphe Menegaux, Partner at Alven, added: “We were extremely impressed by the quality of Foodomarket’s business model, and we’re delighted to be investing in this B2B marketplace model, which is shaking up and digitalising the practices of players in this value chain. The depth of the market enables us to envisage building a leading international player and bringing ever greater value to our partners and customers.”
