Sleeping hospitality tech giant, Ordermentum, has reached a $1 billion in annual gross merchandise value; a figure that has advanced exponentially due to the pandemic.
The company has invested over $25m into the Aussie food & beverage industry, backed by investors; Pure Asset Management, Naos Asset Management, Matt Rockman (SEEK co-founder), David Gordon (Founder ShippingEasy) and Bosco Tan (Pocketbook co-founder).
How did Ordermentum scale so fast?
Ordermentum is Australia’s largest wholesale online order management platform for food and beverage industry. 34,000 cafes, bars and restaurants have now adopted the fully integrated tech system, with a growing number of venues having 5 or more suppliers on the platform.
Digital payments through the Ordermentum platform have increased 153% in the last two years, a figure that founder and Chief Executive Officer Adam Theobald believes was achieved due to the wide adoption of digital innovation through the COVID-19 pandemic.
“The use of digital payments from both suppliers and venues has been an absolute game changer for small businesses. It went from a nice to have in our suite, to the core reason new customers come to us. Suppliers on our platform are being paid up to five times faster than those who haven’t adopted digital payments,” said Adam Theobald, CEO, Ordermentum.
“The pandemic quickly accelerated the need for suppliers and hospitality businesses alike to stay on top of their payments. Bad debts are quickly becoming a thing of the past thanks to the platform, because businesses have the option to charge upfront, getting rid of lengthy credit checks; or charge automatically according to terms they set. Our clients have found it extremely useful through the uncertainty of the last two years,” Theobald further said.
How will Ordermentum use the funding?
While Ordermentum released new features like Chat, Spend Insights and One Click Customer Onboarding, the company is continuing to expand its features and pursue its purpose to reinvigorate the industry, by using tech to trade smarter and create high trust relationships.
“Our capital is helping us keep up with the demands of Food and Beverage operators looking to digitise their business. It took six years to process our first $1 billion in GMV, and now we are on track to generate $3 billion in GMV in the next 6 months. The momentum we are seeing right now is significant and with that comes new challenges,” said Mr. Theobald.
“In our early days, we had to make educated guesses on where our venues wanted us to focus in terms of supply categories. Our categories were specialty coffee suppliers and bakers. Now, our 34,000 venues are telling us what they want, and they are branching into other categories, requesting Fruit & Veg, Meat, Chicken, Seafood and Packaging suppliers.”
“It’s now also not unusual to see 60-70% of new suppliers’ customers already using Ordermentum. The network effect of our brand is really kicking in, which is in line with our mission to become the number one Food and Beverage platform that helps businesses thrive by trading smarter. We really are just getting started,” concluded Mr. Theobald.
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