FoodByUs, has completed a raising of $10 million in a Series A funding round which is following an exceptional period of growth in annual sales of more than 600% since 2019.
FoodByUs is Australia’s largest online hospitality marketplace that connects restaurants, cafes, and caterers with hundreds of wholesale food and alcohol suppliers.
FoodByUs attracts significant investor interest
Through the power of the marketplace, independent venues can instantly search and compare hundreds of thousands of products, with transparent and consistent pricing, no credit applications and access to the purchasing power normally reserved for bigger businesses.
The platform goes further as a hospitality procurement solution, allowing for digital issue resolution, full cost reporting and even automatically pushes all invoices into Xero.
At a time when support for the hospitality industry is more critical than ever, FoodByUs is delivering a much-needed B2B (business-to-business) tech platform that helps venues in the one area that challenges every business in the industry – procurement.
The team has grown from 38 to 55 and another 10 people are expected to join this year.
The funds raised will fuel FoodByUs’ impressive growth and its mission to become an essential piece of technology solution for every independent hospitality business, right alongside other critical software like point of sale, rostering, accounting and more.
FoodByUs welcomes the Series A funding
Ben Lipschitz, the Co-Founder and Managing Director said, “FoodByUs was built on the premise of improving the overlooked back of house function within hospitality venues.”
“With experience in building marketplaces, we aim to create solutions that can simplify the wholesale ordering process and get back time while increasing a venue’s bottom line.”
“When these small and medium sized businesses are facilitated with access to a wider variety of suppliers and the best-in-market pricing, the whole industry benefits.”
“For wholesalers we offer an additional channel to market with guaranteed payment. FoodByUs is in a high growth phase that will be accelerated by the current funding round.”
“This funding will be harnessed in order to boost sales, marketing and product development.”
“Although we are already the leading solution in our market, this funding round will help in cementing FoodByUs as the dominant hospitality procurement tech in Australia.”
“In the aftermath of the COVID-19 pandemic we are continuously seeing many hospitality venues weighing up their options for how to re-open while still being profitable.”
“In trying to make up for lost sales they also have to deal with social distancing restrictions and in many cases, a drop in revenue due to tourism being significantly down.”
“Technology is therefore going to play a critical role in helping venues to reduce expenditure and maximise profit while still delivering an amazing customer experience.”
Stakeholder comments on FoodByUs’ funding
Dan Phillips, the Co-Head of Macquarie Venture Capital team is extremely optimistic.
“We have invested in FoodByUs since the business started and the quality of its management has seen the business grow strongly, including through the COVID-19 pandemic.”
“We are therefore extremely excited to continue in supporting FoodByUs and its mission of improving the efficiency of Australia’s massive independent hospitality industry.”
Fabrice Grinda, the Head of FJ Labs is also optimistic about their prospects, “We invest globally in digital marketplaces, and especially B2B (business-to-business) marketplaces.”
“In FoodByUs we have not only experienced a great product to market fit and critical problems to solve, but also a team that has all the necessary experience to pull it off.”
The business operates across Sydney, Melbourne and Brisbane and recently expanded into the $2 billion liquor industry, with alcohol suppliers leveraging the platform and currently they include the Liquor Co-Op and National Liquor Wholesalers.