Foodomarket, the digital B2B food marketplace for the hospitality industry, has secured a Series A funding round of £9.5 million. The funding round was led by Alven Capital, a prominent European venture capital firm that has supported other successful marketplace businesses. The global foodservice market is worth $2.5 trillion and has seen sustained growth in recent years. However, restaurants spend around 30% of their income on food supplies. With the war in Ukraine and widespread inflation further impacting narrow profit margins, buyers, especially at small businesses, are left with limited traditional suppliers. This leaves them in the dark on whether the produce they purchase is the best value on the market.
This issue was the driving force behind the creation of Foodomarket. Foodomarket is an open and transparent online marketplace that allows sellers who meet strict quality standards to list their produce, thus creating a level playing field. Buyers can then make decisions based on quality and price in one easy-to-use system. Foodomarket handles and guarantees supplier payments, providing peace of mind to buyers and sellers.
Foodomarket’s impressive performance in France showcases its impact in the industry. The company’s growth tripled in 2022 with a 92% rate of repeat business. A 12-month trial in the UK saw 500 restaurants in London sign up. Additionally, buying through Foodomarket’s platform is typically 15% cheaper than via traditional distributors. Furthermore, sellers gain access to a large pool of potential buyers, which lowers the risk of stranded assets and food waste.
The latest funding will aid Foodomarket’s official UK launch and its expansion into other areas beyond London, including the US. The company plans to use the funds to roll out its website and app and expand its teams in local markets to provide a customized experience to customers. Co-founders Eric Nivoix and Matthieu Boivent have been working in the digital services industry together for over a decade, building several successful B2B marketplaces in different industries.
According to Eric Nivoix, Foodomarket’s Co-founder and CEO, “This is a pivotal moment for Foodomarket’s evolution. The funding announced today goes a long way towards helping us achieve our goals. Our impressive performance in France demonstrates that we’re doing something right, and launching our offering in the UK was the logical next step.”
Rodolphe Menegaux, Partner at Alven, added, “We were extremely impressed by the quality of Foodomarket’s business model, and we’re delighted to be investing in this B2B marketplace that is shaking up and digitizing 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.”
Foodomarket was built by restaurant owners for restaurant owners, and its success showcases the benefits of having a platform that is tailored to customers’ needs. With its expansion plans globally and the increased interest in the hospitality industry, Foodomarket aims to offer buyers and sellers a solution that creates transparency and accountability.
