Foodomarket secures £9.5M to expand online B2B food marketplace for hospitality industry in UK and US
Foodomarket, a digital B2B food marketplace designed to bring together suppliers and buyers in the hospitality industry, has raised £9.5 million in a Series A round, which will support its launch in the UK and US.
The French company’s goal is to offer an open and transparent online marketplace where sellers must meet rigorous standards to list their produce. Buyers can compare offers from several suppliers on the site, allowing them to make decisions around the quality and price of produce more easily. The firm handles and guarantees payments for suppliers.
The platform gives buyers access to a range of produce, including prepared foods, fish and seafood, fruit and vegetables, drinks, dairy, meat and poultry, grocery, delicatessen, and frozen goods.
Foodomarket could provide relief to many hospitality businesses struggling to stay afloat in the UK amidst soaring energy costs. The firm says buying through its platform is 15% cheaper than sourcing supplies through traditional distributors.
The latest funding will help the firm reach hospitality businesses outside of London, following a 12-month trial in the capital which saw 500 restaurants sign up. The money will also support its initial expansion in the US.
The Series A raise was led by European venture capital firm Alven Capital, which funds several marketplace businesses, such as UK-based online independent retail firm Ankorstore.
Rodolphe Menegaux, Partner at Alven, commented: “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.”
The brainchild of Eric Nivoix and Matthieu Boivent, the company saw its growth rate triple in 2022 and has a 92% repeat business rate.
Eric Nivoix, co-founder & CEO of Foodomarket, said in a statement: “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 When we set out, our aim was to mend a broken, outdated system and generate opportunity for entrepreneurs and small business owners.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.”