Foodomarket, a digital marketplace catering specifically to the needs of the hospitality industry, has successfully secured £9.5 million in a Series A funding round. The funds obtained will be utilized to fuel the company’s expansion efforts.
European venture capital firm Alven Capital has spearheaded the latest funding round, propelling the company’s official launch in the UK and facilitating its expansion beyond London, while also enabling its entry into the US market. Originating in France, the company successfully conducted a year-long trial in the UK, during which it garnered the support of 500 restaurants in London.
In addition to the aforementioned purposes, Foodomarket intends to utilize the raised funds for the development and launch of its upcoming app and website. Furthermore, the company aims to bolster its local teams in various markets, with the ultimate goal of delivering a personalized and customized experience to its valued customers.
The company presents itself as an inclusive and transparent digital marketplace, welcoming sellers who meet “stringent criteria” to showcase their products. Buyers can assess quality and price to make informed decisions, while Foodomarket takes care of payment processing and ensures supplier satisfaction.
Foodomarket announced a remarkable three-fold growth in 2022, highlighting a remarkable 92% rate of repeat business on its platform. The company asserts that purchasing through their marketplace offers a cost advantage of 15% compared to traditional distributors. Moreover, sellers benefit from access to a vast network of buyers, mitigating the risk of unsold inventory and reducing food waste.
With a combined experience of over 20 years in the industry, Co-Founders Eric Nivoix and Matthieu Boivent have a proven track record of creating successful B2B marketplaces. They have successfully launched and operated multiple online platforms in various industries, showcasing their deep understanding and expertise in building thriving digital marketplaces.
Nivoix said that the funding round has been a “major moment” in Foodomarket’s evolution, commenting: “When we set out, our aim was to mend a broken, outdated system and generate opportunity for entrepreneurs and small business owners”.
He added, “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.”
According to Rodolphe Menegaux, a partner at Alven, the B2B marketplace model is revolutionizing and digitizing the operations of stakeholders within this value chain. His statement underscores the transformative impact of B2B marketplaces, which are fundamentally changing the way business is conducted in the industry.
“The depth of the market enables us to envisage building a leading international player and bringing ever greater value to our partners and customers,” Menegaux commented.