Edmonton-based startups that provide digital infrastructure for the food and beverage industry are ready to grow after securing $ 2.3 million in seed funding.
Accelerate Fund III, which co-invests in early-stage Alberta startups, said Tuesday that it led the Truffle Systems funding round with Edmonton venture capital firms Sprout.vc and Birchcliff Partners.
Truffle provides a digital platform that allows restaurants and others to automate operations from the back to the front of the house. Founder and CEO Omer Chaudhary said it includes online or internal customer orders and contactless payments.
Chaudhary said the plunge will enable strategic growth, allowing 25 companies to add 8-10 positions, including two managers, in preparation for the next 12-18 months of funding. I added that.
“It also allows us to invest marketing costs to disseminate information to more restaurants and eateries,” he said.
After its launch in February 2020, just before the start of the COVID-19 pandemic, which led to government restrictions on food services, the company signed 200 subscribers in the first year and is now around 600. Chaudhary said. The Truffle website details customer stories from local restaurants such as Northern Chicken, Mikado Sushi and Robata.
“I quickly realized that the entire industry was digitized overnight and restaurants could no longer rely solely on physical store business,” Chaudhary said. “They needed to be more flexible, in which technology played a big role and we just built an entire platform that could do exactly what we needed.”
In a news release on Tuesday, Accelerate Fund III highlighted the growing demand for pandemic-enabled online food orders and their reliance on third-party delivery services such as UberEats, Skip the Dishes, and DoorDash. Some of these services reportedly charge up to 30 percent commission.
According to Chaudhary, Truffle allows you to order directly by subscribing to a restaurant, eliminating these charges. Restaurants can also perform deliveries through their own drivers or by sharing drivers with other subscribers on the platform.
In addition, Truffle allows restaurants to fill gaps created by other delivery services by giving subscribers ownership of customer data.
“They can market to them, send promotions, know what their buying habits are, and really serve their customer base,” Chaudhary said.
Edmonton’s businesses initially formed the core of Truffle’s business before expanding to Alberta as a whole, but the platform is now across Canada, including businesses in British Columbia, Ontario, and Saskatchewan. I have a subscriber.
In a statement on Tuesday, Arden Tse, investment manager for Accelerate Fund III, said as a former restaurant owner, he believes Truffle is offering its own solution as a point-of-sale system.
“By using technology to do more with fewer staff, as the ongoing restaurant transformation, the direct connection between customers and the kitchen, and the growing labor shortage over time. I think Truffle is playing a big role, “Tse said in the release.
Edmonton Tech Startup Truffle Systems Secures $ 2.3 Million Seed Funds
Source link Edmonton Tech Startup Truffle Systems Secures $ 2.3 Million Seed Funds